Skip to main content

STO Issuance Platforms: Crypto Fundraising Business Model in the Future!

Security tokens have gained crucial importance in recent years. These tokens are financial securities such as stocks or bonds. They are in the form of digital assets which means that these tokens are subjected to regulatory norms and derives their value from a tradeable external asset. This blog is intended to provide you with the process of developing STO issuance platforms.

Why develop your own STO issuance Platforms?

Most of the startups are looking to get funded through Security Token Offering (STO). A security token is subjected to federal security regulations and can be derived value from the external, tradeable asset. The security token offering platform is the place where the token sale event takes place.

As most of the utility tokens are required to access only a certain set of services, these security tokens are required to represent the assets with the rights of ownership. This means that the security holders are entitled to profit shares, equity, dividends, etc.



There are three types of security tokens:

Equity Token

Equity Tokens are one type of STO which represents the ownership of a company. They guarantee crucial equity-like rights for the investors and the issuers.

Asset-backed Token

Asset-backed tokens increase the potential initial raise for fund operators and other parties who issue securities. Example real estate.

Debt Token

 Debt tokens are yet another type of security token which represents a debt. 

Moreover, they come up with a great set of benefits

  • Enhanced Market Efficiency
  • Lower Assurance Fees
  • Fractionalization of assets

In addition to this, security tokens are considered to be appealing to most startups, for the following set of reasons:

Easier Entry to the markets

The security token offering provides flexibility. With this flexibility, smaller companies can raise funds through the private capital market at lower up-front costs. Therefore, the best STO platform will come up with a hassle-free entry.

Accessibility to institutional capital

With its regulated nature of Security Token Offering, security tokens act as a gateway for traditional capital into the blockchain domain. The funding through STOs can be done internationally. 

Looking for a Security token offering services?

We have a rich set of experience in developing the STO platform with legal requirements and provide a security token offering services for your unique business needs. You can get in touch with us to create your own STO launch platform with a compliant token to raise funds for your business.

Get in touch with us to start your STO business journey.

Talk to our Experts - https://bit.ly/3A6uXrM

Comments

Popular posts from this blog

Smart Contract Development Company in Washington

Smart Contracts are now essential to any blockchain-based business. The self-executing digital contract is the key to automate processes, transactions, and agreements, helping to reduce costs, hence security and end the very confusing and not reliable paperwork. Smart contracts are automated digital contracts that enable highly-secure and self-executing agreements to be formulated. They solve many issues faced in traditional contracts such as lengthy paperwork, the need for third-party intervention, and huge costs. Codezeros is the Smart Contract Development Company with the best solutions for your enterprise. Up to date with every new technology and innovation in the blockchain world. Our team of experts is focused on building an outstanding computer-based protocol. Customizable for any type of industry, the digital contract doesn’t need a middleman to ensure that all the parties involved are performing their part. Once all the rules and conditions are settled, its base algor...

Top blockchain App Development Company in Toronto

Nowadays, it’s quite a challenging job to find-out the best company that provides blockchain application development services. There are lots of companies in the market that offers blockchain solutions and are trying to take a first place in this field. Codezeros is a leading Blockchain app development company with high potential for perfection and innovation. To create Blockchain apps that revamps user experience has been our vision since inception.       Codezeros is a Top  blockchain App Development Company in Toronto  that has a highly dedicated team of expert developers who can craft apps perfectly according to your requirements. They provide customized blockchain app development solutions based on the client requirements and also deliver blockchain technology related other services with high quality at an effective cost. We develop next generation of Blockchain Apps for our customers using Ethereum & Hedera Hashgraph and many mor...

Security Token Offering Services(STO) | Codezeros

Stay at the top of growth wave with quality token development. Security tokens are just a more flexible version of regular securities, only more efficient. They are cryptographic tokens that pay interest and dividends or share profits to token holders based on an asset like shares, real estate, or bonds. Some of the major benefits of opting for STO development are as follows: Traded as securities Credibility Low Fees Decentralized assets remain decentralized An enterprise or a startup will sell its digital asset- its cryptocurrency, to its investors and whosoever, supports the project financially. This sale of their cryptocurrency or a fraction of it will happen in a pre-decided currency form of USD, Euros, or a cryptocurrency like bitcoin. This process will be followed by whitepaper creation and a pitch deck. Later on, after Tokenomics of the cryptocurrency and smart contracts, a pre-STO landing page is created. This process comprises of STO solutions that we provide. We...