U.S.-regulated security token platform TokenSoft is now providing self-managed accounts for investors.
The new service, announced on Thursday, is aimed to provide users of the platform a less technical and more secure way to hold and control their security token investments. Effectively a digital wallet, the product offers automated dividend distributions and built-in reporting for token issuers. Multi-signature security is provided too, using a key model used by wallets currently holding over $1 billion in investments.
“We’re excited to bring a multi-signature wallet security packaged in a self-controlled, easy to manage brokerage-style experience to the over 100,000 investors using our platform,” said TokenSoft CEO Mason Borda.
Regulatory compliant security token standards such as ethereum’s ERC-1404 and Tezos’ FA1.2 are supported.
Jordan Davis, director of business development at the firm, said wallets like TokenSoft Investment Accounts will “put pressure” on financial institutions to offer better services and management tools to investors.
“People will be able to add or remove service providers from accessing their assets the same way you can add or remove profiles from your Netflix subscription, he said.
In December, TokenSoft’s subsidiary, DTAC LLC, was registered as a transfer agent with the U.S. Securities and Exchange Commission – an important regulatory step on its path to bring tokenization to traditional institutions. TokenSoft also owns an interest in a broker-dealer registered with the Financial Industry Regulatory Authority.
Setting out to provide the tech for firms to “go straight to IPO” by putting their shares on a blockchain, Borda said in a previous report that TokenSoft is “building all the things you need for an automated investment bank.”
EDIT (16:33 UTC, Sep. 30, 2020): Corrected an erroneous line about the multisig security.