Security Token offering development company

The blockchain is one of the most valuable technologies which supports the crypto assets like bitcoin, litecoin, ethereum, utility tokens, security tokens, ICO etc. As the blockchain is used worldwide in all the major industries like health care, finance, Banks, Retail, Insurance, Government, Logistics, Transportation, Entertainment and Agriculture. 

How the security token is using blockchain technology?

In the past days, ICO’s and token generation techniques are the economical way of raising funds. For the sake of accredited investors, the possibility of investing in ico is way lesser than the new generation token generation model security token offerings. Just imagine that the token generated using the blockchain technology is regulated with financial laws and securities exchange commission. This is the new era of blockchain based fundraising models.

In ICO, the project is backed by the new cryptocurrency and used for raising funds. The coin or token is later used for accessing the products or services of the company. This type of utility tokens is common in ICO. But in Security token offering, the tokens are created and regulated by the securities exchange commission and the tokens are used to access the ownership or share of the company. This is exactly like offering the company stocks in the blockchain network. 

Security token development outrages the ICO:

The security token is a new method of token offering that has emerged as a correction of ICO’s major misgivings that is: stronger regulation and the separation of speculation from the utility. In simpler terms, security tokens are used to share profits, pay interest/dividend or invest in other tokens to generate profits for the token holders.

The security tokens offerings are more stable than ICO’s and can be traded easily on your chosen exchange. They are less cumbersome and more secure than Initial Coin Offerings.

The STO’s have also helped to provide a better reputation in the cryptocurrency market, this is because the ICO’s have a reputation of being an environment for scam/illicit activities. Due to this regulated nature of STO’s, the token offerings are seen to be more credible to the investors and there is fewer chances of investors for doing illegal activities.

Unlike ICO’s, STO’s give ownership to the investors over real assets. The biggest benefit of STO over ICO is that the STO’s are likely to get attracted by many investors than ICO. Thus the STO’s have led to many predictions that result in the outbreaking of traditional initial coin offerings method.

5 Important things you need to know in STO Development:

Security token Offering is an evolution of ICO. Where ICO is not government regulation for raising funds. But, STO overcomes the regulation drawbacks of ICO. 

STO- Digitized Traditional Security:

Security tokens are acts as a traditional securities in the form of digitized manner. 

You know the value of security, If you are a participant in stock market, bonds, realestate, CD and etc. For example, a security token would simply replace your paper stock certificate with a digital version.

Security token offers simply your digital proof of ownership for security in underlying digital asset. The Benefits of STO is tradable on global marketplaces, giving security tokens a level of liquidity that which would be more powerful than traditional securities.

STO with smart contract:

The smart contract is a simple digital program to automatically execute once a specified criterion is satisfied. Security tokens are executed with a number of smart contracts. Eventually, Smart contracts are written with the programs like how the token can be bought, sold and traded in a compliant way. Those tokens run on the blockchain technology those transactions are digitally transparent, traceable and immutable. 
So, the perfectly coded Security Token makes it virtually rejects anyone to buy, sell, or trade the security token in an illegal way.

STO More Liquidity:

STO offers a global liquidity for trading. So, It would be considered as a most valuable asset. Security Tokens have the tendency to denote the fractional ownership of an asset and to ability to trade on global security token bitcoin marketplaces and bitcoin exchanges platforms.

More Enhancements over traditional trading:

Securities are maintained by the combination of excel spreadsheets, lawyers, paper documents, custodians, intermediary agents, and accountants. They takes up a lot of time and money but the possibility of getting human errors.
Security tokens can also be performed automatically and evolve the output in any events associated with holding the security, such as distributions with blockchain technology.

Trustable blockchain:

Due to the digitized pattern, There is no need for any one party to trust the other when transacting via a security token. All transactions associated with a security token (issuance, buying, selling, trading, etc.) are recorded on the blockchain , Everyone just trusts the math rather than human., which is considered a “trustless” system due to the fact that blockchains are public and immutable in their record keeping. 


Benefits of security tokens:

  • Security Ownership – The tokens come with solid ownership rights thus the token acts as shares in a project 
  • Cost reduction – No need for human brokers, therefore fewer costs.
  • Asset trading – The tokens received can also be used to purchase other crypto assets.

How to develop your STO tokens?

Developing security tokens is not the easy as you may think. It may take more time to completely launch the token offerings. It needs to be executed with the smart contract algorithms and verified by the securities and exchange commission. To make your job easy, our coinjoker team helps you from consulting to creating security tokens and building a blockchain based application. We can assist you in each stage of Launching STO.

Contact us for free STO development.


Contact details:

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