QRC Group (QRC) has announced the industry's first published Security Token Specification, independently facilitated and
published by BSI, the UK national standards body. The PAS 19668 standard provides for the technical specification and
cross-blockchain publication of security tokens, for tokens issued on any distributed ledger system. This PAS (Publicly
Available Specification) takes effect from 31 December, 2020.
In the absence of an industry-wide standard, security token information has been organized and presented in various
formats and different locations, making access highly inefficient and increasingly complex for investors and active
market participants. PAS 19668 is an effort to fill that gap by specifying how information and properties relating to
security tokens should be structured and presented.
PAS 19668 is for use by international security token issuers. It is also a reference for security token holders,
security token exchanges and custodians, investors in security tokens and auditors checking conformity, and any third
parties that provide services to issuers of security tokens. PAS 19668 does not cover utility tokens or unregulated
tokens.
"PAS 19668:2020: Publication requirements for security tokens - Specification" is available here: https://shop.bsigroup.com/ProductDetail?pid=000000000030376033
PAS 19668 has been independently facilitated by BSI following consensus by a steering group of experts from various
industries including digital asset exchanges, traditional financial exchanges, issuance platforms and academia.
Shogo-Ishida, CEO of QRC Group, sponsor of the PAS, said: "We are very pleased to announce PAS 19668. With BSI
standardizing security token technology, and with a specification draft, we take a great step forward in legitimizing
security token offerings and STO fundraising. Standardization will consolidate technology innovation and best practices
from disparate STO platforms, and accelerate STO market growth.
"Issuers trust BSI-standard technology. This trust will lead to greater confidence in technology providers and token
distributors, and drive adoption of STO fundraising activity," continued Ishida. "As digitization continues in many
industries, PAS 19668 will encourage further efforts to digitize securities backed by blockchain technology. We hope
that people will welcome the standard, and issue security tokens more securely and conveniently."
Alexandre Kech, CEO, Onchain Custodian, Convenor ISO TC68/SC8/WG3 Digital Token Identifier: "Standards are critical for
the maturing of any new industry. PAS 19668, which already leverages the ISO 10962 Classification of Financial
Instruments (CFI) standard, will be powerful when used in combination with the ISO 24165 Digital Token Identifier
expected to be finalised and available for us in 2021."
Thomas Borrel, CPO, Polymath: "Mass adoption of security tokens can only happen through standardization. ERC1400
established the standard for security tokens and PAS19668 will materially contribute to transparency through simplified
access to information and attributes of each token. PAS19668 reliance on existing and upcoming ISO standards will ensure
consistency across all assets, traditional and digital."
Luc Falempin, CEO, Tokeny Solutions: "Blockchain technologies represent a great opportunity to use a common IT
infrastructure for the world of finance. It is therefore essential to facilitate the interoperability of solutions and
to formalize the data. We are delighted with this initiative as we can now complete the institutional-grade security
token protocol T-REX with the PAS19668 specification model."
Jor Law, Director, Prime Trust and consultant to several key players in the STO ecosystem: "Having a standardized method
of identifying security tokens globally promulgated by the BSI is important for the evolution of STOs and increased
adoption. With a uniform method to digest security tokens, data flow and transaction handling can improve to allow
greater interoperability across geographic regions and more seamless interaction between the different participants that
comprise a healthy capital markets system."
BSI Steering Group is composed of representatives from 1st Idea Limited, Bank Frick, BC Group, BitGo, Blockstream,
BnkToTheFuture, CMS Cameron McKenna Nabarro Olswang LLP, CryptoCompare, DeversiFi, DSTOQ, London Stock Exchange Group
(LSEG), Onchain Custodian, Polymath, Prime Trust, QRC Group, Singapore Management University (SMU), Tokenomica, Tokeny
Solutions.
PAS19668 Technical Author: Adam Vaziri.
BSI Announcement: https://tinyurl.com/bsigroup-mediacentre-15dec20
QRC Announcement: https://www.qrc.group/top-news
QRC Group (QRC) is a RegTech and blockchain advisory firm providing technical solutions for the deployment of digital
securities in conformity with international standards, including PAS19688. HK-based QRC has related company offices in
Tokyo, Singapore, Kuala Lumpur, Labuan and Vietnam. Visit https://www.qrc.group.