TokenSoft is rolling out a new tool to help token issuers comply with securities requirements.
The security token facilitator announced Tuesday that it had developed an administrative panel for transfer agents, essentially building a software tool to aid banks, trust companies and other third parties to more easily manage security token offerings on behalf of their issuers.
Mason Borda, CEO of TokenSoft, told CoinDesk that the company began working with transfer agents in 2018, finding that they had specific needs when it came to security token issuances due to regulatory requirements.
“Any SEC-registered offering requires a transfer agent much like every security that’s trading publicly today has a transfer agent in the back,” he said. “So for registered offerings, we’re expecting the need for transfer agents to increase over time.”
Borda went on to explain:
“They need to have administrative privileges over a token. For example, the ability to freeze a token to cover the case where someone might lose their keys, or where someone might pass away to transfer the token to the beneficial owner. So we’ve been building out a set of features where those can be met.”
TokenSoft is specifically offering its clients access to software tools that any transfer agent can use to manage securities issuances.
As a result, issuers or other clients who need transfer agents can work with their first choice. TokenSoft itself is not a transfer agent, though it will provide support for transfer agents using its tools.
Borda called support for transfer agents “a key piece of infrastructure.”
Jeff Bandman, a former advisor to the U.S.