LIVE: Justin Rice of the Stellar Development Foundation exploring MAJOR Protocol 17 proposal

Stellar Global Radio with Sam: Exploring the Stellar Blockchain and Beyond

English - May 29, 2021 00:28 - 30 minutes - 28.2 MB - ★★★★★ - 1 rating
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I sit down with Justin Rice, Head of Ecosystem, for the Stellar Development Foundation to discuss the exciting upgrades heading to the Stellar Blockchain with the upcoming Protocol 17 upgrade that comes to a vote June 1st. Protocol 17 introduces a single new feature that opens up new possibilities for issuing regulated assets on the Stellar network.

Asset clawback is designed for businesses issuing regulated financial instruments, such as money market funds, bonds, and equities. To comply with securities regulatory requirements in many jurisdictions, these issuers — or their designated transfer agents — must demonstrate the ability to revoke assets in certain situations, and this new feature allows them to do that.

To enable asset clawback, Protocol 17 introduces a new account flag, new trustline and claimable balance flags, and new operations to take advantage of those flags. When the right account flags are set, an issuer can clawback a full or partial balance or a claimable balance, and can set and clear trustline flags as necessary.

Before Protocol 17, there were a limited number of regulated financial instruments on Stellar because there wasn't a great way to comply with securities regulations that require the issuer revocation ability. There were some suggested solutions that relied on multi-sig, but they gave the issuer signing power over the asset holder's account and compromised the custody of other assets in their wallet, and so they weren't viable for most people. With the introduction of Asset Clawback, issuers can easily tokenize all kinds of funds, bonds, and equities, and they can do so in a compliant manner. By connecting these new assets to the existing network of anchors — services that provide users all over the world to access the network in their local currency — Stellar allows issuers of regulated assets to extend their reach, access new markets, and increase access to the world's financial infrastructure.

Catch the video interview here

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Learn more about Stellar and the Stellar Development Foundation: www.Stellar.Org and on Twitter at @StellarOrg