STO stands for Security Token Offering. It refers to a movement happening at the ICO stage (Initial Coin Offering).
In a nutshell, STO is a concept that features a new business framework along with mitigating the risk for investors. Moreover, security tokens are financial securities. Thus, tangible assets, profits, or revenue back them.
Essentially, the security tokens are trustworthy due to their compliance with the regulations of the Securities and Exchange Commission (SEC). Also, they successfully accomplish the Howey test.
At Oodles Blockchain, the team of blockchain and crypto developers excels in security token offering development.
The experts assess every minute need of the clients. They work smartly to expedite secure digital transactions for them.
Why do Investors need Security tokens?
Usually, digital tokens are of two types; Security Token, and Utility Token.
Utility tokens are like tools for users to use a specific service or product provided by the issuer.
On the contrary, Security Tokens are a mix of the idea of digital assets and traditional economic instruments. Investors can use security tokens to tokenize the proprietary rights of personal possessions, including bond, debt, and actual property.
Also, investors can use the security tokens to make investments in a project or a company.
STO services help gather funds via Security token issuance. The procedure is quite similar to ICO.
The Road to a Successful STO
Initially, developers tokenize the assets in a liquidity model suitable to fundraisers’ needs. Also, they ensure that it maintains values for the token scheme for a long haul.
Owner’s Manual for the Investors
In the Security Token Offering system, a whitepaper is an owner’s guide, a report explaining your potential investors the hassles your enterprise addresses, team and roadmap for the following years.
The Right Blockchain Platform
Our strength is using the right blockchain platform for supporting Tokenized Securities.
For a successful STO development, Ethereum ERC-20 may not be the platform to use, given the protocol changes, gas prices, and network congestion.
Oodles Blockchain build customized ‘smart’ smart contracts, with regulations embedded, on top of a suitable blockchain platform like Hyperledger or Stellar to support your STO.
Smart Contracts Integration
Smart Contracts ensure the automation of regulatory needs. Also, eliminates the requirement of third-party intermediaries like transfer agents.
Listing on Exchange
Subsequent to the final step of the token development, they need to be listed on the Security Token Exchanges. It’s a necessary step as it enables investors to trade on the secondary market.
Type of STO Development
- Equity Token
- Reserve Assets Token
- Debt Token
The following are the features of an STO (Secure Token Offering)
- Asset fractionalization
- Easy liquidity
- Top-notch security
- Lower Fees
- Global capital flow
- Protected Wallet
- Auto- transfer of dividends
- Legally Compliant Tokens
- Global Investor Participation
Merits of Security token offering
- Exceptional Accuracy
- No Middlemen
- Decision Making
- Trade-off Rights
- Switching Custody
Why Choose us as your Security Token Offering Development Company?
Being a leading cryptocurrency and blockchain development company, Oodles Blockchain also aims to become the top Security Token Offering Development Company that’s better than its adversaries.
Our team of expert blockchain developers with years of experience can develop efficient security token offering programs. As a Security Token Offering Development Company, we are also cost-effective.
In the long run, initiation and launch of security token offerings could help you attract more investors under a reliable platform.