Polymath migrates security token platform from Ethereum to Parity’s Substrate

After announcing it would build a new base layer chain called Polymesh, the Polymath ($POLY) team released additional details that it would be building on the Substrate framework. The new chain will be highly optimized for compliant asset creation and sales focusing on business logic such as smart contract communications and runtime modules.

Why it matters:

• While Ethereum fostered hundreds of token sales using its platform, many did not abide by existing securities regulations. This move demonstrates the difficulty in using permissionless blockchains and could signal a shift towards more private, tailored chains for token sales in an effort to comply with regulators.
• Aragon ($ANT) has also discussed plans to migrate onto Polkadot showing that even projects deeply embedded in the Ethereum ecosystem are looking leverage Substrate for its scalability and flexibility.