Hedera Hashgraph And LCX Collaborate To Develop Infrastructure For Digital Securities

by LCX Team

July 19, 2021

It’s been a journey which started 2 years ago when Monty Metzger, CEO at LCX, and Leemon Baird, Co-Founder and CTO of Hedera Hashgraph, met for a confidential back-room meeting during the World Economic Forum in China. Today we are excited to announce the strategic partnership with Hedera Hashgraph and the first steps of this long-term collaboration.

With this partnership, we are expanding the Liechtenstein Protocol for Hedera network to establish a new standard for security tokens and tokenized digital assets. LCX will also add support for Hedera’s native cryptocurrency, HBAR, on LCX exchange.

The Hedera network will leverage the platform infrastructure of LCX to expand the Hedera Token Service (HTS) with the addition of a new security token standard, and provide secure, reliable, transparent, and compliant infrastructure for digital securities to its users.

Twitter post discussing the concept of decentralization.

HTS will benefit from the Liechtenstein Protocol, which offers compliance, tokenization, on-chain asset management, on-chain identity and provides organizations with the ability to a framework to build a new security token on the Hedera public ledger, with the ability to automatically enforce specific conditions that relate to legal and regulatory requirements applicable to securities and enables automated compliance of the tokenized asset with pre-defined requirements built in the code.

“The Liechtenstein Protocol” is a proprietary protocol to deliver a chain-agnostic token standard. The Liechtenstein Protocol intends to leverage the Hedera distributed network to establish a solution that will enable token issuers to access secure, reliable, transparent, and compliant infrastructure for digital securities.

Hedera Hashgraph is the most used, sustainable, enterprise-grade public ledger. The Hedera network offers stable governance with no forking, low and predictable transaction fees, fairness, built-in compliance, real-time settlement, and sustainable energy consumption — all of which are driving massive adoption. Hedera Hashgraph has a transparent governance model, led by the Hedera Governing Council, therefore ensuring the reliability of the decentralized network. Hbar, the native cryptocurrency of the Hedera network, is used to protect the network through proof-of-stake and power decentralized applications.

The Liechtenstein Protocol

The Liechtenstein Protocol is a new digital securities standard that enforces regulatory compliance at the chain and token level, being a blockchain agnostic protocol, it will be implemented on a variety of public chains. The blockchain agnostic standard aims to create a secure tokenization framework that will truly drive the growth and proliferation of asset tokenization. Read the Liechtenstein Protocol Technical White Paper.

We at LCX believe that the Hedera and LCX collaboration establishes the grounds for additional compliant tokenisation initiatives including the issuance of digital securities utilizing the Hedera network.

“It has been wonderful to see the wide array of innovative applications in the Hedera ecosystem,” said Leemon Baird, CTO and Co-Founder of Hedera Hashgraph. “LCX is leading the way in creating blockchain-agnostic standards for the exciting area of digital securities, and by leveraging Hedera’s unique properties of speed, security, and fairness with a low carbon footprint, which will accelerate the adoption of this emerging market.”

The Hedera Token Service (HTS) offers LCX and its clients the ability to issue and configure tokens on the Hedera platform, taking full advantage of Hedera Hashgraph’s native performance, security, stability, and governance. HTS combined with LCX’s compliant token sale manager offers a faster and more efficient alternative to smart contract token creation.

“There is an immediate need for practicable standards for digital securities to help businesses around the world simplify and enhance how they issue security tokens, raise funds or establish new blockchain powered financial instruments,” said Monty C. M. Metzger, CEO and Founder of LCX. “LCX’s partnership with Hedera Hashgraph is an important milestone in our efforts to digitize traditional processes and help spur innovation in this critical industry segment for the decades to come.”

From this strategic partnership, the Hedera community and LCX community will benefit in numerous ways:

The Liechtenstein Protocol : Implement a new standard for digital securities enabling on-chain and on-token-level compliance on the Hedera network.
Security Token Standard : Develop a framework for the tokenization of securities, the infrastructure for security tokens and corporate tokens (permission-based tokens).
HBAR Listing on LCX Exchange : Listing of Hedera’s native cryptocurrency, HBAR, on LCX Exchange.

About Hedera Hashgraph

Hedera is the most used, sustainable, enterprise-grade public network for the decentralized economy. The platform is governed by a council of the world’s leading organizations, including Avery Dennison, Boeing, Chainlink Labs, Dentons, Deutsche Telekom, DLA Piper, EDF (Électricité de France), eftpos, FIS (WorldPay), Google, IBM, LG Electronics, Magalu, Nomura Holdings, Shinhan Bank, Standard Bank Group, Swirlds, Tata Communications, University College London (UCL), Wipro, and Zain Group.

For more information, visit www.hedera.com, or follow Hedera on Twitter at @hedera.

Disclaimer: This content contains forward-looking statements that involve inherent risks and uncertainties, and we might not be able to achieve the predictions, forecasts, projections and other outcomes we describe or imply in forward-looking statements. A number of important factors could cause results to differ materially from the plans, objectives, expectations, estimates, and intentions we express in these forward-looking statements and in other public filings and press releases. We may not achieve all of the expected benefits of our strategic initiatives and partnerships. Factors beyond our control, including but not limited to the market and economic conditions, changes in laws, rules or regulations and other market challenges, could limit our ability to achieve some or all of the expected benefits of these initiatives. This content is not financial advice and should not form the basis of any financial investment decisions nor be seen as a recommendation to buy or sell any good or product. Trading cryptocurrency is complex and comes with a high risk of losing money, particularly if you trade on leverage. You should carefully consider whether trading cryptocurrencies is right for you and take the time to learn how trading works and decide how much money you are prepared to lose.