Follow up Question: So hypothetically I’m ABC Corp and I want to issue 100mm $USD of bonds. I issue it through the Polymath platform with an advisor like Matador. My transaction fee (say 1%) is funded in POLY which creates demand for the token.

If the velocity of POLY is low like the USD or BTC it will go up in value. Ok all good there, except theoretically Matador could never accept Poly so that could cause problems. As an issuer I have no incentive to use POLY besides the ease of use, but as long as the transaction is pegged to USD I probably won’t care if I’m ABC Corp what I pay in.

What are the advantages to ABC Corp issuing on this platform? How is this different from an investment bank besides potential lower fees? Also is there demand for these notes, who would buy these bonds? (u/savantness)

Matador accepts POLY. What makes you think they never could? They do, today.

Today, the biggest advantages for ABC Corp to use the Polymath platform are having securities that are tokens rather than a piece of paper. Especially scenarios where a company wants to issue private securities and remain a private company, but wants to have *some* liquidity.

^ We haven’t begun thinking about bonds yet, and for the most part, we’ve seen much more interest from funds issuing shares, and companies looking to issue stock.

If you have a private company, it is very hard to trade private shares. Transfer agents and lawyers are involved at every step. Conversely, with Polymath’s ST-20 protocol, the tokens can only be traded among authorized investors in situations that maintain regulatory compliance, so these manual checks become less necessary. Your private company shares therefore become more attractive than legacy, paper shares due to the potential increased liquidity for investors, lower trade fees, and ease of use. Your private company may now be able to raise more money, have a more active investor pool, and investors are more willing to purchase your securities.

You can think of Matador like an investment bank — with expertise in the area of raising capital in the blockchain space.

To reiterate, the benefit for ABC Corp is that their securities are more liquid and easier to trade. And ABC Corp may still want to engage services of seasoned capital markets experts.