Korean ICON Introduces New Token Standard

ICON, a Korean-based project that wants to establish itself as the decentralized network for blockchain interoperability, has made three significant announcements in the span of two days.

As the market starts showing signs of recovery, with several cryptocurrencies ‘popping off’ and registering percentage gains in the double digits, the ICON Foundation has come forth with three announcements of its own.

ICON Tokens for Real World Assets
IRC16, a newly-formed token standard for ICON’s blockchain network, is designed to allow for the transparent issuance of tokenized assets and securities. Moreover, it supports the tokenization of physical assets via a modular architecture for built-in compliance for legal regulations related to asset ownership and transactions.

Tokenization of real-world assets has been a hot topic in the second half of 2018, with several projects working on conducting security token offerings (STOs). Tokenization leads to an easier division of ownership for physical assets into smaller units, which is expected to improve liquidity for high-value assets and expand the investor pool.

As all transactions that guarantee the settlement of asset trading between sellers and buyers are executed on the blockchain via smart-contracts, the processing time and fees are minimized.

ICON adds a token specification to support the development of tokenized securities. ICON’s new token standard, IRC16, aims to simplify the process of creating blockchain-based securities and tokenized assets.

First and foremost, it checks whether or not token users have passed the necessary KYC (know your customer) and AML (anti-money laundering) procedures.

The second control point is related to compliance with regulations for a specific asset.

A third module ensures that all relevant legal documents are being recorded and stored.

The final module allows for token customization by issuers.