Stellar Protocol 17 introduces asset clawback, enabling regulated financial instruments like bonds and equities to comply with securities regulations requiring issuer revocation abilities. Validators will vote on the upgrade June 1, 2021.
Stellar validators will vote on Protocol 17 upgrade on June 1, 2021 at 1500 UTC. The upgrade introduces asset clawback, a feature designed for issuers of regulated financial instruments such as money market funds, bonds, and equities. Asset clawback allows issuers to revoke assets in compliance with securities regulations, recover fraudulently obtained assets, respond to regulatory actions, and enable identity-proofed persons to recover assets after key loss or theft. The feature includes new account flags, trustline flags, and operations. Clawback doesn't affect existing assets, can't be applied retroactively, and can't be enabled on XLM. This enables new categories of regulated assets on Stellar while maintaining asset holder awareness and custody security.
