PRESS RELEASE: The Millbrook Accord: Industry Titans Gather to Scale Security Token EffortsDecember 7, 2018
Today, several blockchain industry titans, as part of a consortium called the Millbrook Accord, have announced the launch of the Verified Token Framework (VTF) to provide leading industry guidelines on security token interoperability.
Security tokens are expected to become a fundamental pillar of future financial products, with an estimated addressable market of $500 USD trillion. However, the security token movement faces an impending interoperability crisis and differing regulatory requirements in global jurisdictions. The Millbrook Accord will work towards the promotion of security token initiatives globally, providing much-needed leadership in the maturation of digital asset classes.
GSX Group, tZERO, SharesPost, and Techemy among founding members of the Verified Token Framework to provide interoperable security token guidelines
New York, NY – December 4, 2018 – A consortium of some of the most influential blockchain industry leaders have announced the launch of a common framework to facilitate market interoperability of security tokens. The Millbrook Accord, formed at the Blockchain South Leadership Summit 2018 at the Millbrook Resort in Queenstown, New Zealand, includes SharesPost, Techemy, tZERO, Gibraltar Stock Exchange (GSX) Group, Global Advisors, ERCDEX, NEM, HyperLink Capital, Alchemist Ventures, Bankorus, Blockchain Labs, and AnyPay.
Governed by the Blockchain Token Association (BTA), the Millbrook Accord is a working group focused on the promotion and representation of Security Token initiatives, and the maturation of new digital asset classes. The accord’s new Verified Token Framework (VTF) will provide leading industry guidelines on security token interoperability, and aims to become the foremost reference document, codebase, and community for the security token ecosystem. The core VTF codebase itself is open-source.
Security tokens are digital assets representing traditional securities, including physical assets and equities, and are expected to serve as a fundamental pillar of the future of financial products. The addressable market for security tokens is estimated to be around $500 trillion USD, with investments in the new asset class having already exceeded $500 million USD in 2018 alone.
The primary purpose of the Millbrook Accord is to put forward practical solutions in order to facilitate a more seamless process for verifying identities, navigating jurisdictions, and ensuring compliance among token holders, exchanges, and platforms.
Saum Noursalehi, CEO of tZERO, said: “In order for the security token movement to grow, companies need to agree on an unbiased standard. The Verified Token Framework is a step toward ensuring that digital assets are interoperable and that the unique challenges presented by security tokens are addressed.”
In order to support continued collaboration and consensus-building in addressing some of the biggest obstacles to the continued expansion of the blockchain industry, the Millbrook Accord will hold quarterly bake-offs in locations all over the world, with the first being held in New York City. As part of these meetings, members will be encouraged to review and contribute to a new GitHub repository, which has been set up to help advance the accord’s software goals.
Jeff Pulver, Chairman of the Blockchain Token Association, said: “In the Voice over Internet Protocol era, we invited industry leaders to bring their production-ready code to quarterly bake-offs, where developers sought to make their code interoperable. The result was a free and open source set of standards, which ultimately led to interoperability of services. We believe a similar collaborative approach to technological advancement will assist in the acceleration of blockchain adoption and the maturation of the global security tokens ecosystem.”
Addressing the currently fragmented industry standards which result from differing regulatory requirements in global jurisdictions, the Millbrook Accord VTF aims to accelerate adoption and growth of tokenized securities by supporting industry alignment and collective focus to overcome a common challenge.
In addition, the VTF codebase will include various regional compliance and feature requirements for security tokens. NEM, a founding member of the Millbrook Accord, will serve as the first non-Ethereum based blockchain implementation of the VTF through its protocol features, making the VTF the first formalized multi-chain effort for security tokens to date.
Fran Strajnar, CEO and Founder of Techemy, said “The members of the Millbrook Accord and the BTA have come together due to our shared belief that the security token industry is set to experience an interoperability crisis. Tokens issued by various groups will be incompatible between blockchains, within market participants, including the exchanges that will list them, as well as the custodians and broker dealers who will handle them. The Millbrook Accord is an effort to create an interoperable framework for security tokens, which can be adopted on any smart-contract enabled blockchain and in any country.”
About the Millbrook Accord:
The Millbrook Accord is a working group formed by key drivers of the security token movement. Formed at the Blockchain South 2018 Leadership Summit at the Millbrook Resort, Queenstown, New Zealand, the Millbrook Accord sets out to provide solutions and industry guidelines surrounding the current complexities around security token interactions. Focusing on the development of interoperability solutions for the securities token market, the working group aims to provide practical solutions when it comes to navigating jurisdictions and ensuring compliance among token holders, exchanges, and platforms. Spearheaded by Techemy Ltd, the group’s founding members include SharesPost, tZERO, GSX Group, Global Advisors, ERCDEX, NEM, HyperLink Capital, Alchemist Ventures, Bankorus, Blockchain Labs, AnyPay, and Wachsman.
For more information, visit: VerifiedTokenFramework.com