Security Token

We created a Security Token that automatically enforces specific conditions related to legal and regulatory requirements applicable to securities in various jurisdictions.

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Through micobo’s enterprise tokenization solution, issuers have access to their independent WebApplication to easily interact with the smart-contracts composing the tailored Security Token Standard.

micobo’s Security Token Standard is an ERC20- and ERC1400-compatible, constrainable Ethereum token and compliant with German/European financial securities regulations. NVISO has thoroughly audited the smart contracts coded into the Security Token. These smart contracts are the backbone of micobo’s enterprise tokenization solution and have been used to tokenize more than 250 million euros worth of shares and assets.

Main features

ERC 20 compatible
ERC 1400 Partitions
Embedded Corporate Actions: Customizable
Controller operations for compliace (force transfers etc., can be turned off)
Very granular, customizable roles management
Optional “free” transactions through GSN
Bulk-minting, -whitelisting and -addRoles
Document Management

Transfer Constraints (Modules), updatable & customizable
- Whitelist for accounts
- Dividend payments
- Interest rates (including negative)
- Locking periods for accounts and amounts
- Time-based spending limits
- Vesting periods
- Off-chain validation

With a granular role system our clients are able to distribute responsibilities between issuers, auditors/compliance, and other authorized third parties. This means that while, for example, the issuer has control over minting and locking tokens, an auditor could have the power to pause the token contract or force a transfer in case of fraud. If needed, these features can also be turned off forever at a later point, and new constraints can be added upon request.

Roles can be assigned and removed by our clients’ wallet(s). The following is an overview of the standard available roles:

Role	Description
Admin	Manages roles / add partitions
Controller	Force token transfer
Issuer	Mint tokens
Pauser	Pause transactions
Redeemer	Burn tokens
Cap_editor	Edit caps for partitions
Module_editor	Edit constraints modules
document_editor	Edit documents
Whitelist_editor	Edit whitelist
time_lock_editor	Edit time-lock module
spending_limits_editor	Edit spending-limits module
vesting_period_editor	Edit vesting-period module
gsn_controller	Edit GSN behavior (allow, disallow, module)

The solution

Open Source

micobo is building the infrastructure for the future of finance, improving capital markets capabilities with innovative technology: We believe in the disruptive power of blockchain, and particularly of Ethereum. That is why we want to keep supporting the adoption of this technology for capital markets.

For us, it is clear that collaborative development through the open-source process can accelerate innovation. With this contribution, we aim to ensure a compliant and secure way of tokenizing financial instruments, encouraging all actors to heighten the benefits brought up with it.

Learn more about micobo Security Token: Access to the open-source repo in GitHub.

To contribute to a strong foundation for these new ecosystems that enhance the financial industry, our Ethereum Security Token Standard is open-source.