The security token industry is still early, and, up till now, each security token issuance platform has been taking a different approach to specification data. The lack of any common information standard makes it difficult for exchanges and other service providers to integrate the wide variety of emerging security tokens.
Specification data can include things like:
- The platform the token is issued on
- Jurisdictions the token is legally tradable in
- Investor classification requirements
To help resolve the diversity of specifications, the British Standards Institute (BSI) collaborated with a steering committee (including Blockstream, see below) to produce a universal standard for constructing and sharing this specification data. The result of this work is PAS 19668, Publication requirements for security tokens – Specification.
Formalizing security token properties
PAS 19668:2020 defines the requirements for the publication of information and the technical attributes of security tokens. It is available to any international security token issuers. The standard formalizes how to describe the properties of security tokens so that issuers can reliably share their data across different exchanges and services.
“[PAS 19668] enables users to search across different blockchain networks for security tokens that have certain properties. For example, using the newly standardized information, a market participant could filter security tokens issued on different blockchains based on jurisdiction alone or investor classification requirements.” - BSI
Already compatible with Liquid-based security tokens
Specifications for security tokens issued on the Liquid Network through Blockstream AMP are compatible with the PAS 19668:2020.
To help issuers produce specification data as simply as possible, Blockstream has released the industry’s first tool to generate standard-compliant specification files. The tool builds specifications quickly by pulling the details of a security token issuance from Blockstream’s Liquid asset registry. The issuer can then share the specification file with exchanges and other service providers.
A joint effort
The standard was produced by a steering group of participants from various industries and facilitated by BSI. As part of the steering committee, Blockstream was a key contributor to the technical specification of PAS 19668:2020. Other steering committee participants included: 1st Idea Limited, Bank Frick, BC Group, BitGo, BnkToTheFuture, CMS Cameron McKenna Nabarro Olswang LLP, CryptoCompare, DeversiFi, DSTOQ, London Stock Exchange Group (LSEG), Onchain Custodian, Polymath, Prime Trust, QRC Group, Singapore Management University (SMU), Tokenomica, and Tokeny Solutions.
Get involved
If you’re considering launching a standard-based security token, visit the Blockstream AMP site to learn more about issuing on the Liquid Network.
