Company
6 min
Choosing a network for a regulated security
The network is chosen from who holds the asset and how often it pays, never from which network is in the news.
An issuer’s first question is often “which chain?”. Ours is “who will hold this, and how often do we pay them?”. The answers usually choose the network.
Four things we look at
Who must support it. If the administrator, the custodian and the main distributors already support Ethereum, that is a strong reason to start there, as Halden did. How many holders, how often. Monthly rent to 862 holders of Vale Street Logistics runs on Base. What controls must live in the asset. For Corran’s distributors, Stellar was already the settlement network for their cash, so the fund’s units live there too. Whether one standard is already in use. Meridian’s distributors read ERC-1400, so its share class runs on Polygon under that standard. Saltmarsh’s carbon units run on Avalanche, Ostend’s tank receipts on Arbitrum.
What does not change
The register, the four questions, the recovery procedure and the 09:00 reconciliation are the same on all six, and so is the way a settlement is reported: in one block, or not at all.
Daniel Lindgren
Chief Technology Officer
