The market for security token platforms seems to be getting crowder every weeks. In a market with only a handful of actively traded security tokens, we already have over 50 platforms that are promising to be the future of crypto-securities. On paper, most of those platforms look incredibly similar which contributes to the noise in the market. To differentiate signal from noise, security token platforms must evolve their technical capabilities in order to support more sophisticated offerings. And we don’t need to start from scratch; the Ethereum ecosystem offers a rich set of protocols that can easily improve the feature-set of the next generation security token platforms. Today, I would like to explore some key protocols that I believe are incredibly well suited for building some of the key blocks of the security token infrastructure.
The goal of this article is not to focus on super futuristic capabilities but rather in features that are already present in the current generation of use cases and in protocols that have achieved meaningful level of traction and maturity.