A security token is one that is subjected to federal security regulations and can be derived its value from an external, tradeable asset. The security token offering platform is the place where the token sale event takes place. Utilize the STO Module (STM) to craft and personalize security token offerings, fundraising activities, and compliance procedures to suit your investor audience. Stobox Digital Securities Dashboard is a comprehensive solution to streamline all operations with security tokens and tokenized assets.

A digital marketplace for physical and (or) virtual real estate where users can trade and fractionally own property and stake their assets as NFTs. CoinFactory’s whitelabel DAO platform provides a feature rich trader dashboard packed with all the essential features in a seamless UI. DS Dashboard is your key to optimizing business success through tokenization.

Is it Security or the Utility Token: XRP Case

Cut research time for investors by providing them with vetted collections of unique, curated offerings of different asset classes. Our whitelabel crypto exchange platform provides the flexibility for your users to access the exchange from multi-platform as well as multi device. Our whitelabel solution provides the flexibility for your users to access the platform from multi-platform as well as multi device. Security token offerings (STOs) are being hailed as “the new ICOs” as they enable companies to issue digital tokens while still remaining compliant with regulations and security laws. Open the doors to liquidity by enabling seamless trading through the DS Swap, empowering your tokenized assets to thrive in the digital marketplace. It provides tools for issuers to create and manage STOs, set compliance rules, and monitor assets.

Organizations investing in tokenized assets for improved liquidity, reduced transaction costs, access to a broader range of investment opportunities, and the ease of trading and managing these digital assets. The same way, while traditional utility tokens cannot act as securities, security tokens CAN act as utilities. In other words, with the help of smart contracts, issuers can choose to use the security tokens as a payment method on their platform, network gateway, voting rights, loyalty programs and more.

Planning an STO?

The post-offering administration for STOs is also less cumbersome and cheaper than with traditional IPOs. And although the process is seen as cheaper than a traditional IPO, the additional upfront work does make it more costly and raise the barrier of entry compared to utility ICOs. With the regulated nature of Security Token Offering, security tokens act as a gateway for traditional capital into the blockchain domain. Our whitelabel DAO platform provides the flexibility for your users to access the platform from multi-platform as well as multi device.

Using an STO instead of an IPO (initial public offering) can add more flexibility for companies looking to offer shares without being subject to localized regulations or traditional guidelines. STOs are also easier to get into the hands of modern investors, easier to liquidate, and generally more conducive to the free market environment. STOs differ from ICOs as they represent investment contracts for investment assets like stocks, bonds, or even real estate investment trusts (REITs). STOs come with additional legal obligations as they seek to comply with security laws ICOs are not subject to. While the concept of STO platforms may seem incredibly alien to those unfamiliar with the blockchain, it’s actually very simple.

Security token success storytelling

Even for those that are not big on the blockchain, they’ve undoubtedly heard of bitcoin, ethereum, and other popular cryptocurrencies. Underlining their enormous enthusiasm is the concept of decentralization, or in practical terms, providing laymen access to previously exclusive financial markets. It’s the same principle that drives security token offerings and the burgeoning industry of STO platforms.

STOs (security token offerings) were created in response to the ICO (initial coin offering) bubble burst in 2018. After the crypto market cap fell by over $750 billion, regulatory bodies began emphasizing more secure legislation for tokens. STOs were created as tokens that would comply with the relevant laws and regulations for securities. The acronym STO stands for Security Token Offering, an sto platform increasingly important concept in the financial world. These securities, or financial instruments, have a monetary value and are intended for trading on STO crypto exchanges, where information is recorded on public blockchains. The process is often seen as a hybrid approach between cryptocurrency initial coin offerings (ICO) and the more traditional initial public offering (IPO) for stocks.

Top Security Token Offerings

At the moment they still have not decided whether STOs fall under the SEC Act or the Digital Asset Act, but it depends on the STO’s conditions and the details in its white paper. Our team of experts are ready to assess your environment and recommend the right plan to fit your needs. When it comes to the upscale DeFi market, success doesn’t happen by chance. Take a quick look at our STO development success stories and see how we’ve helped clients achieve challenging goals.

As such, it can effectively eliminate fraud, as every action and process is documented clearly, from start to finish. Exploring these blockchain products reveals solutions for better asset management, transparency, and accessibility in your business. We find the best way to improve your costumer relationships with digital assets and assist with preparation for the issuance. Tokens are unique in that that they can securitize various forms of assets including both tangible and intangible assets. This has already had some success, with the recent auction of Andy Warhol’s 14 Small Electric Chairs, an iconic contemporary art piece featuring an electric chair, allowing art lovers to buy a share in the painting.

Blockchain-based software to issue, manage and trade tokenized assets

They would typically also only be able to raise funds from accredited investors who have themselves passed certain requirements. Let initiatives thrive faster than ICOs by allowing their owners to raise funds through security token offering platforms, a revolutionary alternative to traditional token offerings. The white-label STO Platform allows tokenizing any type of asset (property, art, digital content, etc.) while users can raise capital through institutional-grade blockchain solutions. Besides individual assets, users can tokenize whole funds units and get unique benefits. DS Swap provides security tokens issuers the solution to manage liquidity pools and automated market-making functionality.

• ICOs emphasize their utility, though if the project they represent is successful they can also be used as a form of currency to buy a product or services.
• We determine the right structure to tokenize your assets, help you choose the right jurisdiction, and prepare the roadmap.
• Unlike utility ICO tokens, which (at least purportedly) serve as coupons for a product or service, security tokens represent investment contracts.
• We create STO marketing strategies that promote your platform and generates interest in your offering.
• Various successful use cases and success stories related to the tokenization of real-world assets through security tokens.
• An STO, also known as a Security Token Offering, is a digital token supported by blockchain technology that represents a stake in an asset.

Not only do we assist in choosing a representation model — from asset-backed, equity, or security token to stablecoin — but we also analyze related legal intricacies. We advise on security token implementation feasibility, help design unique solution roadmaps, estimate potential spending, and engineer custom platforms with all business specifics factored in. The barrier to entry for companies to launch an ICO is, therefore, much lower, as they do not have to do all the upfront compliance work.

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Investors gain access to traditional security benefits pre-determined by the issuer, like profit sharing, equity stake, or voting rights. Many ICOs had very narrow applications as their tokens could only be used in niche networks. Security tokens create a wider appeal, allowing investment from people who believe in the project, but would not necessarily use the network themselves. These tokens not only provide a secure transaction record but can also retain value which means that the token can itself act as a digital asset. One of the hottest STO platforms in the blockchain community, Polymath is basically the Coinbase of asset tokenization. What made the latter so popular among cryptocurrency newbies is that it provided an intuitive arena where everyday folks can buy and sell digital assets.

MVP development

Landshare is a striking example of the clearest asset tokenization use case. We tokenize residential apartments in the US and offering them both domestically to accredited investors and globally to non-accredited (with some limitations). Such a model allows us to sell properties at a higher price due to the liquidity premium and higher demand. Various successful use cases and success stories related to the tokenization of real-world assets through security tokens.

Blockchain-powered STO platforms

We work with the following types of clients to help bring your ideas to life. We enable you to tokenise your software development and raise the necessary capital to bring it to life. We ensure complete regulatory compliance for your STO and platform solution. We manage all elements of your STO development project from start to finish. The blockchain protocol on which your STO is built provides a clear, accurate, immutable audit trail, acting as one source of truth for your users. Stobox has a strong network of partners worldwide, including law firms, marketing agencies, and niche service providers.