Hacken Grants Tokenization Protocol ERC3643 a 10/10 Security Audit Score

Tokeny, the leading tokenization platform and main contributor to the protocol, announced that the version 4.0 of the T-REX implementation of the ERC3643, the open source blockchain protocol for tokenizing real-world assets, underwent a thorough security audit conducted by the leading Web3 auditor, Hacken. The results of the audit yielded a flawless score of 10/10, serving as a testament to the high level of security and integrity that the protocol offers.

The full score from Hacken builds upon the proven track record achieved by its previous version, which has received similar approval from the reputable third-party auditor, Kaspersky. Over the years, the protocol has undergone multiple developments to enhance its capabilities and cater to the needs of the tokenization ecosystem. 

ERC3643 is the leading token standard for permissioned tokens. It provides a comprehensive framework for token issuers to enforce compliance and control, making it the most suitable standard for tokenization of real-world assets and financial instruments. With its proven track record of five years, it has become the de facto standard for tokenization. In fact, more than $28B of assets around the world have been tokenized using the protocol, including open-ended funds (UCITs and REITs), alternative funds, asset-backed securities, debt, real estate, equity, trade finance, with much more in the pipeline.

The key enabler of the compliance framework is ERC3643’s built-in decentralized identity (DID) framework, ONCHAINID. It provides a reliable way to ensure compliance by verifying the identity of token holders via verifiable credentials. As a result, this solution allows users to retain full custody of their assets, providing a high level of security and control all within a compliant environment, even on a public blockchain. Notably, the ONCHAINID standard was audited in parallel and earned as well a 10/10 security score from Hacken’s audit.

Hacken’s position as a top tier security auditor for blockchain protocols is indisputable. Its extensive portfolio includes conducting security audits for numerous high-profile crypto exchanges, underscoring their profound comprehension of the security necessities of blockchain-based systems. With both protocols earning 10/10 security audit scores from Hacken, users can trust that they are reliable and secure options for asset tokenization and identity verification.

The release of ERC3643 V4 is Tokeny’s latest contribution to the standardization of tokenization for capital markets. These upgrades are also open source. By making sure that the main token standard for tokenized securities is always up-to-date with the latest innovations, Tokeny aims to accelerate the growth of the ecosystem.

Read the full audit report of ONCHAINID here and the T-REX implementation of the ERC3643 standard here.

“Receiving a 10/10 security audit score for the T-REX implementation of ERC3643 from Hacken is a testament to our commitment to providing the highest standards of security and compliance. This achievement not only furthers the growth of the tokenization ecosystem, but also instills confidence in our customers and partners that we prioritize their safety and security above all else” – Joachim Lebrun, Head of Blockchain of Tokeny.

“We are pleased to have worked with Tokeny on this security audit, and we are impressed with the level of maturity and security that the open source ERC3643 protocol provides. These smart contracts are designed to ensure that security tokens are issued and managed in a secure and reliable way, which is crucial for the success of any tokenization project.” – Dmytro Budorin, CEO of Hacken.

About Tokeny

Tokeny provides a compliance infrastructure for digital assets. It allows financial actors operating in private markets to compliantly and seamlessly issue, transfer, and manage securities using distributed ledger technology. By applying trust, compliance, and control on a hyper-efficient infrastructure, Tokeny enables market participants to unlock significant advancements in the management and liquidity of financial instruments. The company is backed by strategic investors such as Euronext and Inveniam.

About Hacken

Hacken, a blockchain security auditor, aims to transform Web3 into a more ethical space by emphasizing that cybersecurity extends beyond hack prevention to encompass the entire way businesses operate—avoiding scams, rug pulls, wash trading, and circulation supply manipulations. By advocating for ethical business conduct, respecting communities, maintaining honesty with investors and partners, and valuing reputation, Hacken protects Web3 projects and their communities with a comprehensive suite of cybersecurity services, including Smart Contract Audits, L1 Blockchain Protocol Audits, dApp Audits, Penetration Testing, and Bug Bounty Programs run on HackenProof, the top bug bounty platform.

Image by Marc Wieland from Unsplash

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