Polygon Launches Europe's First Regulated Blockchain-Based Secondary Market

Polygon Hosts Assetera: A New Era for Tokenized Real-World Assets

In a groundbreaking development in the crypto and blockchain space, Polygon is set to host Assetera, Europe's first regulated secondary market for tokenized real-world assets (RWAs). This innovative platform, which has received regulation from the Austrian Financial Market Authority, aims to bridge the gap between traditional finance and the growing blockchain economy.

What is Assetera?

Assetera will leverage in-house developed smart contracts on the Polygon blockchain to facilitate trading in various financial instruments. The platform intends to cater to a diverse client base, including retail, professional, and institutional investors, by offering the following:

• Transferable securities
• Money market instruments
• Fund units
• Derivatives
• Tokenized RWAs such as real estate and art

Unique Trading Features

Utilizing the high-performance capabilities of the Polygon network, Assetera will conduct trading activities directly on its platform using stablecoins for:

1. Purchase
2. Clearing
3. Settlement through atomic swaps

The platform will operate 24/7, allowing for seamless trading without the need for manual intervention, thereby enhancing liquidity and accessibility.

Security and Compliance

Assetera’s CEO, Thomas Labenbacher, emphasized the importance of maintaining security in conjunction with regulatory compliance. The innovative use of the Polygon Proof-of-Stake mechanism ensures that the platform remains secure while promoting efficient trading.

Wallet Solutions and Anti-Money Laundering Measures

Assetera will support both custodial and non-custodial wallets and is in the process of introducing bank-managed wallets to further streamline the user experience. Collaborations with leading firms such as Sumsub, Chainalysis, and Fireblocks have been established to implement robust Anti-Money Laundering (AML) measures.

Regulatory Framework: MiFID II and MiCA

With a comprehensive Markets in Financial Instruments Directive 2018 (MiFID II) license and a virtual asset service provider (VASP) license, Assetera positions itself firmly within the regulatory framework. Digital assets classified as financial instruments under MiFID II are subject to stringent regulations, especially with recent changes due to the implementation of the Markets in Crypto-Assets (MiCA) legislation.

MiFID II outlines examples of financial instruments but leaves specific definitions to individual member countries. In April, the European Securities and Markets Authority (ESMA) released a consultative document on these definitions, collaborating in July with the European Banking Authority and the European Insurance and Occupational Pensions Authority to further classify crypto assets.

Impact of MiCA on Stablecoins

The recently enacted provisions of MiCA, which came into effect on July 1, directly impacted the stablecoin market, leading to a swift realignment. Noncompliant stablecoin sales are blocked in Europe, while new compliant stablecoins are emerging, ensuring consumer protection and compliance with European regulations.

Conclusion: A New Dawn for Tokenized Assets

The launch of Assetera signifies a pivotal moment for the tokenized finance sector in Europe. By integrating robust regulatory compliance with innovative blockchain technology, Assetera not only enhances the liquidity and accessibility of real-world assets but also promotes trust in digital financial instruments.

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