The Digital Token Identifier Update - ISO 24165

The Digital Token Identifier Update - ISO 24165

ByTC68/SC8 WG3

on

The Digital Token Identifier CD 24165 has been approved by SC8 and comments received during CD ballot are currently being disposed.  Read more...

TC 68/SC 8 resolved on May 14, 2019 to launch a new project in order to address an efficiency gap in the growing digital token market by creating a registration and assignment process for a random, unique, fixed-length identifier for digital tokens. By recording a collection of technical elements that, taken together, establish a unique ‘fingerprint’ for each digital token and are near-immutable as a result of the blockchain structure, the standard addresses both those digital tokens that have clear issuer and governance structures, and those that do not. The standard is expected to enable interoperability, transparency end efficiency between parties such as digital token exchanges, data aggregators, custodians of digital assets, service providers, and regulators.

The standard affirms only the existence of a digital token, creating a 1:1 relationship between a digital token and its identifier. Inclusion in the registry explicitly states it does not warranty (or even mention) the features, functions, legal status, suitability for investment, or regulatory status of a digital token. The standard recognizes that a digital token assigned a DTI may also be eligible for an International Securities Identification Numbering System (ISIN), and allows for an informative reference of an ISIN or other identifier, such as a FIGI, to be added optionally to the registry.

The new standard will exist in two parts: 
Part 1: Method for registration and assignment describes the 'recipe' for the creation of the identifier and would not be expected to change significantly.
Part 2: Data elements for registration and display on the DTI registry describes the technical facts required for each token type and can be updated more frequently.

The next step will be to approve in SC8 a Request for Proposal (RfP) for Registration Agent applicants (the RfP will be posted on the TC68 website when ready).  Following the close of the RfP period, SC8 will evaluate candidates and select the RA.  Once the RA is appointed by ISO Central Secretariat, the standard will move to DIS and after that to publication.   We expect a final standard to be issued in Q1/Q2 2021.