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
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