We take pride in being forerunners in Blockchain Technology and Crypto Token Economy consulting. We always endeavor to help businesses and enterprises to identify the securities like bonds, shares, real estate etc. that can be tokenized and issued as Security Tokens with high level of investors’ trust to invest in their ventures.
On the basis of distributed ledger technology, we have built end-to-end Security Token Issuance Platform which is explicitly designed to launch security tokens with compliance to regulatory framework.
Right to Property
Each token is backed by the stock in your company so that your token holders have equal rights to your actual stockholders in terms of voting and dividend issuance.
If your company does not tokenize your stock or reserve assets, you can easily raise funds by issuing security tokens with the promise of payback in order to attract debt investors.
Reserve Assets Token
Companies that trade in real-world commodities such as: Gold, Real Estate can launch a Security Token Offering (STO) where the tokens are backed by assets reserve.
Since STO is the most innovative, secure and promising way to raise funds for a project, it has the potential to benefit every kind of business. To make you understand in a comprehensive manner, we have outlined a few markets that have thrived using this technology.
STO for a Real Estate Asset
As of now, the worldwide real estate market is estimated at $217 trillion with a 25% contribution from the real estate. The tokenization of real estate will increase liquidity and can be easily traded with much ease. Moreover, it can uncover the most unresolved issues like liquidity and that’s the reason why security token offerings came into the picture to tokenize illiquid assets. With the arrival of security tokens, every asset from dwellings to equities can be easily securitized with respect to statutory compliances for a particular country.
On high-level, following are the benefits of tokenization of assets on a blockchain network:
Reduced barriers to entry for the investors to a greater extent
Transparency and security of ownership of the assets will evolve gradually
While our developers do the tokenization, we always take care of these important aspects:
Type of real estate
Ratio of tokenization
Type of structure (Fund/Special Purpose Vehicle (SPC) or a hybrid)
Liabilities on the property
A suitable smart contract for automation
Federal and State Regulatory and Tax requirements
Keeping track of the token holder’s record
AML/KYC and Investor Accreditation requirements
We can assist you to build an end-to-end security token offering platform, which will help you to raise funds for your real estate project. The tokens that we will create on Ethereum / Stellar platform can be purchased or exchanged on the STP exchange by the traders and investors. Besides, token holder can earn capital profits and a percentage of the property’s future cash flows.
For any startup, corporation or a business entity, we build an equity security token on the Ethereum or Stellar platform. A security token here is represented by the company’s equity, so- called share certificates which provide more security to investors like a share in a company. This plays a vital role for regulatory authorities at an early stage so we sought contact with the relevant authorities and have its compliance checked. The tokenized share certificates of the corporation will, in future, be listed and tradable at different security token exchanges.
By investing in a security token, every individual can benefit from dividend rights in the future and the growing value of the company’s token ecosystem. In addition to this, an investor benefits a lot from the long-term success of the company.
Certainly, with this new form of innovation, the use of blockchain to aid capital formation within the regulatory framework of the Securities Exchange Commission (SEC) could offer a new source of capital for startups, businesses and big scale enterprises and a unique way for investors to invest. Companies will be able to receive investment from the global community adding up to their business revenue and allowing immense opportunities to excel. With hands-on-experience of our developers, we build a robust and scalable ‘security token’ and platform with the state-of-the-art security features.
This is a perfect time to adopt this emerging digital technology, promising to bring a gigantic wave of fund raising.
Every security token has to follow Security Token Standards to represent a real-world object and our adept team is well versed to develop scalable blockchain and smart contracts on the ideal platforms: Ethereum, Hyperledger or Stellar as per the requirements and regulations followed in a specific country.
Let’s have a look at these remarkable features of Security Token development:
Blockchain make sure that all the conditional transactions can be easily seen by the financial regulators. The benefits of a transparent ecosystem help the crypto market under the purview of the Government regulation.
Legally Compliant Tokens
The issued tokens are embedded with smart contracts having the regulations of the registered jurisdiction coded. These consist of legal framework of fundraising, investor qualification rules and transaction limits on transfer.
Global Investor Participation
Issuance companies face issues during the secondary trading when various countries are involved. Security tokens can be traded across countries with the idea that the tokens issued must obey with securities laws. The token sales and secondary trading are developed with the conditions written on smart contract.
We have developed a technology which enables the issuance companies to reissue tokens to the investors if the investor loses their wallet keys based upon certain terms and conditions. The wallet must comply with the legal requirements. Investor must have the right to reclaim the lost tokens.
The issue of security tokens under regulatory frameworks is most trustworthy and faster as compared to what all is involved in carrying out an initial coin offering structured as utility tokens.
Security Token Offering (STO) inculcates a lot of legal precedents which would enhance token buyer protection, rights and expectations.
A security token derives its value from an external, tradable asset being actually a security and give their holders rights in the issuer company and are mostly centered on financial benefits.
Creates an environment with a higher level of transparency with buyers regarding token economics and how they plan to increase the token value.
Security Tokens enables more liquidity into the market as it enables fractional ownership and by lowering investment volumes and by allowing more people to purchase smaller stakes.
Security Tokens comes with immense potential for bypassing investment banks and venture specialists.