David Sacks, the former COO of online payment company PayPal Holdings Inc (NASDAQ:PYPL) wants to have a go at the cryptocurrency market through his new company.
Sacks revealed in a recent interview that he formed a new venture fund called Craft in partnership with Bill Lee who is a Silicon Valley angel investor. Craft aims to focus its attention towards the cryptocurrency market. Both Sacks and Lee have been working as entrepreneurs and angel investors for the past few years.
The former Paypal CEO’s new firm launched a new decentralized compliance protocol called Harbor that aims to standardize the processes through which cryptocurrency assets are traded and issued through blockchain technology. The company launched the new protocol on Tuesday along with a Series A round featuring. Harbor aims to solve the compliance challenges that are associated with the issuance of a regulated asset on blockchain technology.
“Today Harbor announced the Regulated Token Standard, or ‘R-Token’, which is a standard ERC20 token, except it contains additional code to check an on-chain whitelist (called a ‘Regulator Service’) before it trades,” stated Sacks during a recent interview.
Sacks also added that the service can be customized or configured so that it is able to enforce a variety of regulatory requirements. This may range from tax laws to securities in different jurisdictions. The service can also be customized to cater to specific asset types. The idea behind this concept is that each time a trade is requested, the R-Token (Regulated token which is the first project of Harbor), consults with the Regulator Service to determine whether the investors are compliant with all the regulatory measures and also whether they are verified. This system will especially be ideal for keeping tabs with foreign investors.
The former PayPal CEO claims that Harbor aims to protect investors and issuers by simplifying their operations in line with tax and securities among other regulations. This makes it ideal especially in cases where the property market is involved. Such a system will also eliminate the reliance on compliance from centralized exchanges.
PayPal stock closed Tuesday’s trading session at $75.68.