What is STO development?
STO Development is the process of building a crypto currency project with a team of well trained and experienced blockchain developers. We provide ICO consulting and pre-ICO consulting, designing of Token and stakeholder community, development and validation of a comprehensive white paper and a project business strategy, as well as working on PR and marketing campaigns and other crucial tasks for the success of a digital currency.
Security Token Creation : After careful analysis of your business requirements and various aspects of your business, we deliver token solutions accordingly. Our tokens are created in compliance with the SEC Guidelines and the country’s regulations. We deliver three types of security tokens:
STO Whitepaper Development : Whitepapers are an important part of the development process. We provide you with crisp, relevant and extensively researched whitepaper services with a high level of authenticity to attract investors. This adds more reliability to your project.
Token Issuance Portal : We provide STO portals where one can conduct token sales along with the investor’s dashboard. You can also manage the investor’s details, KYC/AML, and other fundraising details.
STO Website Development : Our team of experts will develop a website, as well as landing pages exclusively for STO enabling the token sale and encourage investors to get started quickly.
Multi-currency Funding : We support the investment with multiple currencies. Investors can buy tokens through fiat currencies such as Euro or US dollars or with other cryptocurrencies such as Bitcoin, Litecoin, etc.
KYC Verification : To be aware of any unauthorized access or transaction, we also provide you with the KYC “Know Your Customer” service.
Different Types Of Security Tokens
Equity token is a type of security token that represents a position/ownership of the asset or business and the equity token holders will have right on the property’s success or failure, just like a stakeholder.
Debt token is a token that represents the outstanding debts and liabilities. These tokens assure the token holders for guaranteed payback of profits, assets or shares.
Reserve assets token are the type of tokens that represents the physical assets like building, land, etc. The token holders will get certain rights over the tangible asset.
Utility tokens is a type of token which can bring in the fund for development of the business project. This provides the users to have access to specific product/services.
Reputed Security Token STO Development Company
Being the best cryptocurrency development company, Develop Coins spread wings to create a new generation of security through STO. We are the leading security token development company in India, having a well-experienced team with legal knowledge to accomplish the Howey Test. We provide a complete Security token offering development services, right from STO consulting to the creation of a custom token, till crowdfunding, while following the legal rules and regulations of respective governments including SEC compliance, to ensure safety and success of the token issuer and holder.
What the future holds for security token offerings:
Now that we have discussed so much about security tokens and know what we need to know about them, it is natural to wonder what the future holds for these currencies and security token offerings. Based on the speculations in the crypto market and views of industry experts, here’s a brief analysis of the future of security token offering in 2019 and beyond that.
Experts believe that the flexible nature of security tokens will enable companies to implement liquidity in their businesses by making their valuable components more liquid and tradable, which will, in turn, create new investment opportunities.
Different startups have different reasons to pursue a Security Token Offering (STO). For instance, UCC (United Cancer Centers) project is implementing an STO because they needed a way to fractionate distribution based investment contracts so as to offer their investors a revenue sharing model. This has been made possible by security tokens which make these smart contracts liquidable on STO exchanges.
Other startups and organizations are simply leveraging the blockchain feature of Security Token Offerings to expand their fundraising capabilities beyond a specific region to global investors, while at the same time offering a revenue sharing model to their investors and token holders.
Benefits Of STO
Tokenizing the assets give advantage to the issuer as well as the investors. Some benefits gained by Tokenization are as follows:
Commercial Real Estate
Having STO for commercial real estate can make your real-world investments reliable and accessed digitally & globally.
Equity Capital Markets
Equity Capital Market benefits the issuer and investors by raising capital for business and assurance to investors.
Debt Capital Markets (DCM)
Custom suggestion from experts on raising debt for acquisitions, refinancing or restructuring the existing debt can benefit the issuer.
With tokenization, the investors can have access to their investment fund without the need of middleman.
Some assets cannot be easily converted into cash. Without any loss in value of the asset, tokenization can benefit the issuer and increase the trade volume.
Optimize the price volatility by tokenizing assets such as gold, land and so on with stablecoin, to raise funds in a better way.
Advantages Of STO DEVELOPMENT:
Low barrier for entry : Floating on a stock exchange via a traditional IPO is a time-consuming and arduous process only available to large companies looking to target over US 10m. It required lots of middlemen — including brokers, Exchange fees, extensive due diligence, etc — Costing large sums of money. That is to say, STO takes a short time and costs less, and it can also facilitate financing activities.
Greater flexibility for business owners : STO DEVELOPMENT COMPANY provides much greater flexibility in terms of how you actually run your business — comparable only to a privately-held company. Security tokens also have more transparent value based on the underlying assets, meaning your business is less likely to be shorted, even with a small number of large investors.
Attract global investors : Token standards are uniform across different regions, which means tokens can be easily bought and traded by investors around the world.In fact, based on the diversity of the currency and securities markets, security tokens tend to be much more liquid than privately held shares.
Separate ownership: Security tokens allow you to divide underlying assets into smaller units. This will make it easier for some small investors to participate in matching investments and have the same rights to securities.
BFFI is providing specialized STO services to blockchain entrepreneurs and emerging growth companies, whether in the US, Europe or Australia. We believe that STO will be more credible than ICO, giving investors trust and support. Three types of SECURITY TOKEN OFFERING SERVICES
1. Utility token- Token that only has value in the use of a system.Most ICOs use utility tokens because they’re considered generally safe for most countries in the world. Investors buy an early stake in these tokens with the assumption that the price will go up once the utility increases and the businesses develop. From a legal point of view the issue is that the intention is that the value will go up so the SEC uses this logic to say that utility tokens are a security.
2. Commodity tokens- are tokens backed by a standard assets that already have an independent value such as gold, oil or a sovereign currency.A lot of projects focus on pegging tokens to sovereign currencies, USD being most common. Most of their strategies are fairly simple with users giving cash to a custodial account that is regularly audited by an outside firm but there have been rumors of problems with the largest of these tokens, Tether, that they may not have nearly as much money as they state they do.
3. Security tokens are tokens that equate to an ownership stake in a company or DAO.When you buy a security token you’re buying it with the intention that the value will be derived on the value the company or its future profits/dividends may be worth.There are a lot of existing valuation methodologies, regulation and systems to doing security tokens. All of this regulation forces them to be the most restrictive in who can purchase them. Most of the systems in place for US investors will require you to be an “accredited investor” which requires the investor to have a net worth of at least $1 million or an income of over $200,000 for the last two years.
The security token economy is beginning to see the light. It is a unique development that can change the world with the power of tokenization.
Now that interest in security tokens is on the rise, experts have begun to speak up about their potential. Though the token economy has been around for years, this is the first time that actual security tokens have been developed as well.With this fast growing industry, security tokens are one of the best ways to obtain fast, safe, and secure returns.
STO development can be for anyone who wants to participate in the security token economy without having to be invested in cryptocurrency and trading in uncertain and volatile markets.
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