This decade, particularly the last couple of years has seen an unprecedented surge in the digital currency field. People from all walks of life and for all sorts of reasons are investing in it. Unsurprisingly, at this nascent stage there are significant challenges. One of those being a seamless way of holding these tokens.
Today, the most viable way is to keep them is to have a wallet (offline or otherwise). This has the added drama of associated risks like hacking and theft. Then there is the big legal issues that comes with holding cryptocurrencies. To counter this, Prime trust, on Tuesday the 25th of September, has started offering to hold all ERC20 compliant tokens.
What Is Prime Trust?
A blockchain-based trust company, Prime Trust, is an American company that looks to provide the same revolutionary stability that Paypal did to the overall banking industry. To be the custodian of multiple security tokens Prime Trust will need to resolve a major industry wide challenge, streamlining the nuances and quirks of lots of ERC20 tokens.
In an official statement the CEO and Chief Trust officer of Prime Trust, Scott Purcell, expressed joy at being able to offer this. He went on to describe this development as an engineering breakthrough. It is worth noting that Prime Trust is the first financial institution to hold ERC20 protocol tokens, BTC and ETH.
How This Works
ER20 is the backbone protocol for most of the security tokens developed on the Etherum blockchain. Investors could trade amongst themselves but needed to find out how to safeguard their tokens and also ensure they were in line with U.S. Securities and Exchange Commission (SEC) rules.
Now, for cryptocurrency entities, be it exchanges or investors, Prime Trust has afforded them the opportunity to comply with SEC’s requirements and also provided a safe place for cold storage.
What Made This Possible
Prime Trust used the manpower resources of those involved directly with development of the ERC20 standard. Furthermore they held conferences to get the participants to agree on a framework for this revolutionary idea. The idea being to interconnect via APIs and take advantage of different business models. This will greatly simplify holding tokens.
With this giant step in the evolution of digital currency, investors can hold their tokens in the firm’s custody with more confidence and ease. The company itself is focusing on tokens issued as ERC20 ICO (Initial Coin Offering) as well as STO (Security Tokens Offering). This move sees Prime Trust going beyond its basic offering of Ethereum (ETH) and Bitcoin (BTC) for crypto-retail and custody services.