Strengthen your business model by participating in robust Security Token Offering Development
With ICO’s (Initial Coin Offerings) suffering credibility issues owing to the rising number of scams, the time is right to venture into the promising field of Security token offering development now. They are a new method for crowdfunding from investors by issuing a digital share which represents access to equity, dividends or cash flow from various assets. Security Tokens are expected to be worth a $10 trillion market this year.
They can give competition to other alternative modes of fundraising like IPO’s, ICO’s, private equity, and venture capital. Security Token Offering Development can be done for different assets like real estate, artworks, venture capital funds, collectible cars, coins, jewellery, illiquid assets, gold, silver, and renewable energy.
The advantages to reap by starting Security Token Offering Development are
- Fractionalization of the large assets and offering valuable ownership opportunities to the investors.
- Increase in liquidity enabling faster trading of the assets in the leading secondary markets.
- Compliance with the laws of the SEC (Securities and Exchange Commission) of the USA.
- Complete access to a global capital investment pool without any restrictions.
- Greater market efficiency and price discovery to be experienced by investors.
- A real value is created through access to profit sharing, dividends, and direct involvement in the operations of the organization.
- Ensuring no suspicious activities on the platform by preventing frauds, mispricing, and harmful control by outsiders.
- Presence of a customized blockchain network and tailored smart contracts ensure high efficiency.
The steps to follow for initiating Security Token Offering Development in a jiffy
- Ensure that your business idea is unique and offers something out of the box to investors which have not been offered yet by any of your competitors in the industry.
- Follow all the regulations issued by your regulatory body which will vary depending on your operational jurisdiction.
- Prepare a professional whitepaper by hiring some knowledgeable writers who are comfortable with technical concepts.
- Develop an STO marketing website and showcase all the information about the project on it which would be referred by the prospective investors.
- List your token on the popular exchanges and secondary markets in the industry.
- Enter the crowdsale stage and offer the token to the potential investors in the market.
- Provide post-STO services like clarifying the concerns of investors and other technical support services to make the maximum impact for your firm.
The various factors to take into account before diving into Security Token Offering Development
- The type of asset to be tokenized by your business firm.
- The place where your exchange has been incorporated. It is better to register in an STO-friendly location for favourable conditions.
- The corporate governance structure to be followed by your enterprise.
- Compliance with the KYC (Know Your Customer) and the AML (Anti Money Laundering) guidelines issued by the regulatory bodies from time to time.
- The platform to be established for tokenization of the assets.
- The kind of banking services to be provided by your organization for the investors.
- The exchanges that you have teamed up with for offering secondary trading opportunities to your investors.
- Maintaining a cap table of all the important data from trading.
- Token custody solution.
- Complying with security laws and regulations.
- Following both domestic and international tax laws.
- Undertaking marketing campaigns and publicizing your STO in the press.
The process we follow for Security Token Offering Development
- Carrying out the due diligence required for tokenization.
- Formulation of a Special Purpose Vehicle (SPV) for trading security tokens easily.
- Fixing an appropriate value for each token for issuing it to the investor.
- Creating an exclusive dashboard for investor management which will contain KYC/AML compliance, accredited investor verification, and voting rights to be exercised by the investors and the project owners.
- Offering a legally compliant token to the investors.
- Listing the tokens on the secondary markets for enabling direct trading for the investors.
Our services include STO development, whitepaper preparation, payment system development, developing a token issuance portal, website optimization, organizing a successful multi-currency fundraising campaign, community management, tokenized asset offering development, undertaking KYC verification for the investors, and undertaking STO marketing campaigns.
We can launch STO’s with equity tokens, debt tokens, and reserve asset tokens on different platforms like Ethereum, EOS, Hyperledger, and TRON with relative ease.
Get in touch with our innovative developer team and avail a feasible package soon.