Polymesh vs. Securitize: Security Token Platforms

Native compliance logic: On-chain identity, governance, and asset controls are built into the protocol layer (e.g., Investor Uniqueness Proof, Compliance Modules). This matters for institutions requiring regulatory-grade, immutable compliance that moves with the asset, reducing reliance on external legal agreements.

Turnkey issuance & management: A SaaS platform handling the full lifecycle—KYC/AML via Digital Securities Protocol (DSP), cap table management, dividend distribution, and secondary trading integrations. This matters for traditional asset issuers (VC funds, private companies) who prioritize a managed service over blockchain infrastructure complexity.

Purpose-built blockchain with compliance (KYC/AML) and identity (CDD) embedded at the protocol level via Polymesh Association. This eliminates the need for off-chain legal wrappers for basic transfer restrictions, reducing integration complexity. Ideal for protocols requiring native regulatory compliance.

Proof-of-Stake (PoS) consensus provides deterministic finality (~4 seconds), eliminating fork risk critical for securities settlement. Supports ~1,000 TPS, sufficient for regulated asset lifecycle events (issuance, corporate actions, dividends). Choose this for high-assurance settlement layers over public chains.

Platform-agnostic SaaS that tokenizes and manages assets across Ethereum, Polygon, Avalanche, and Algorand. This provides issuer flexibility and taps into existing DeFi liquidity pools. The Securitize Markets ATS offers a regulated secondary trading venue. Best for issuers prioritizing chain choice and liquidity access.

Largest real-world asset (RWA) issuer by volume, with over 400+ tokenized offerings and $2B+ in assets managed. Deep integrations with transfer agents (like AST) and broker-dealers. This mature ecosystem reduces legal and operational risk for large-scale, traditional finance issuers.

Specialized chain lacks native DeFi (e.g., AMMs, lending protocols), limiting secondary market liquidity and yield opportunities for token holders. While bridges exist, capital is largely siloed. A trade-off for compliance purity that may deter yield-seeking investors.

Compliance is managed off-chain via Securitize's platform, creating ongoing vendor dependency and SaaS fees. Smart contracts are standard ERC-1400/1404, requiring custom development for complex corporate actions. This adds integration and operational overhead versus a native chain.

Native on-chain compliance: Built-in identity (CDD), accreditation checks, and transfer restrictions. This eliminates the need for external legal wrappers, reducing complexity for institutional assets like private equity or regulated funds.

Protocol-level governance via on-chain POLYX token voting. Upgrades are coordinated and executed by the Polymesh Association. This provides a clear, decentralized path for evolution, crucial for long-term protocol dependencies.

Real-world regulatory status: Operates as a licensed Transfer Agent and has an affiliated SEC-registered broker-dealer. This provides a turnkey legal bridge for issuers needing immediate, compliant primary offerings in the US and EU markets.

Asset-agnostic platform: Issues tokens on Ethereum, Polygon, Avalanche, and Algorand via the DS Protocol. This offers issuer flexibility and allows assets to leverage the liquidity and tooling of larger, general-purpose L1/L2 ecosystems.

Smaller DeFi ecosystem compared to Ethereum or Polygon. While specialized for compliance, it lacks the breadth of AMMs and lending protocols. This can be a constraint for assets requiring secondary market depth beyond OTC desks.

Compliance enforced off-chain/at application layer via the DS Protocol. This relies on issuer and investor onboarding into Securitize's ecosystem, creating platform dependency versus Polymesh's inherent chain-level guarantees.