Sustain Exchange will develop a primary issuance platform for digital securities integrated with the Tezos protocol. This will enable them to issue Security Token Offerings (STO's) on Tezos. This will open the road to "a pipeline of asset tokenizations on Tezos in the region". Sustain Exchange is based in the UAE, the United Arab Emirates (Best known for its capital city: Dubai). The UAE is one of the five members of the GCC (Cooperation Council for the Arab States of the Gulf). In July this year, the Tezos Foundation laid the basis for Tezos adoption in the GCC region, by signing a MoU with Taibah Valley in Saudi Arabia.
The development of the issuance platform is part of a more broader interest from Sustain Exchange in Tezos. In addition to the issuance platform, Sustain will also develop a baking infrastructure to enable staking rewards and to take part in Tezos' on-chain governance mechanism. Sustain is taking an interest in actively contributing to the Tezos ecosystem, in particularly the self-sovereign identity projects that are being build on Tezos currently. For example Spruce Systems' decentralized identifier (DID) project on Tezos. This is another example of companies understanding the opportunities which a flexible protocol like Tezos' offers through it's on-chain governance mechanism. Not just active participation, but also proposing upgrades that are specifically useful for applications they see fit. Any proposals that are done by Sustain, will need to be fitting in the Tezos core protocol in such a way, that Sustain will have the support of the majority of the bakers for the proposal to pass the on-chain voting rounds. For more information, see this article.
Sustain Exchange about Tezos:
“Our work on the Tezos protocol adds to the value we want to create on SUSTAIN.EXCHANGE to help the 1.8 billion members of the Muslim community across the world to securely access and trade cryptocurrencies backed by state-of-the-art blockchain technology. Building on Tezos gives us access to a successful and technically experienced global ecosystem of builders and developers, and will help us strengthen our processes and achieve the milestones we have planned for SUSTAIN,” said Sulaiman Al Fahim in the press release.
Sulaiman Al Fahim is the founder of Sustain Exchange and was previously the CEO of Hydra Properties Real Estate Development Company based in Abu Dhabi. He also held the position of President of the Arab Union for Real Estate for two terms. (From 2009 to 2013 and from 2013 to 2017.)
Hubertus Thonhauser, Chairman of the Tezos Foundation Council:
“We are thrilled to welcome SUSTAIN.EXCHANGE to the Tezos ecosystem given their status as a leader in digital innovation. The Tezos Foundation eagerly anticipates SUSTAIN’s contributions both to the protocol and to the growth of the Tezos ecosystem in the GCC region and beyond.”
Active participation of other organizations that look into building their applications on Tezos:
Sustain Exchange is not the first to build on Tezos, while simultaneously becoming a part of the Tezos community. We've seen ENVITED become very active in the community. ENVITED is a work group that explores virtual proof of validation of highly automated driving functions. Work group members include automotive manufacturers such as Audi, BMW, Daimler and Porsche, as well as other Partners.
Tezos' on-chain governance system allows any entity to propose upgrades or additions, while remaining fully decentralized and trustless. This is a very interesting quality for companies or other entities that want to build on a public blockchain, but miss certain qualities in the current protocol. At the same time, the Proof of Stake mechanism and the way Tezos' on-chain governance is designed, no single entity can take over the chain without owning over 50% of the circulating supply. In other words: democratic system of checks and balances provides the independence of the chain. Only additional qualities and changes that do not interfere with the current protocol are welcomed and will make it through the governance cycle.
Tokencrunch also covered the news about Sustain Exchange in an article they published over a week ago. Make sure you give them a follow on Twitter to catch some of the latest news about Tezos and security tokens.