Blockchain App Factory (BAF) is launching STO-in-a-Box service, which is a support solution for its customers.
Several startups and established companies have been supported by the Blockchain App Factory for asset tokenization, regulatory complaints, investor management and as well for fundraising.
STO is a kind of capital raiding that is similar to IPOs and ICOs but is compliant with the regulatory jurisdiction. The entire process is based on Smart Contracts powered by the blockchain technology.
The securities offered are backed by tangible assets. The tangible assets can be shares, commodities, company shares, and even real estate. Leaseum Partners offer real estate tokens or security tokens that are backed by real estate assets with stabilized income in the NYC area.
Tokens holders will be getting voting rights and dividends depending upon what has been agreed upon the smart contracts.
BAF mainly concentrates on compliance. They ensure that their customers complete the STOs successfully and raise the required capital for the business. Clients will be able to tokenize debt, reserve assets, tokenize equity etcetera by making use of this platform.
The STO Fundraising Dashboard comes with a control panel which will be used by token issuers, regulators, and investors. The users will be able to monitor every aspect of their tokens which will include the details of their dividends, secondary market transactions, and their voting rights.
In cases where they support STOs, they ensure that the security tokens are tradable in the secondary markets. This system ensures that accredited investors are the only ones who will be able to trade the tokens.
James Harper, sales director of BAF, stated, “Governments have understood the potential of blockchain technology, and in order to regulate the market they felt that they need to allow the mechanism to operate in a regulated manner.” He further added that “STOs will be a mainstream approach in which companies will raise funds from the public in less than a decade.”
Though the excitement about ICOs is declining, due to the regulatory compliance and the asset back up in security tokens, investors are seeking token security investment. However, several retail investors are not able to access STOs due to regulatory issues.
Different countries in the world are framing the regulatory norms for security token issuance, and several approvals have been issued, and several token offering is scheduled to take place in 2019.
The awareness about secure investment plans are growing, and investors are increasingly concerned about regulations. A lot of security tokens are being strategized by startups, and institutional interest is building for security tokens. More to come in 2019.
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