Amid many innovations happening in the technology, a new fundraising method with underlying technology as cryptography has evolved. STO, security token offering is what we are about to see.
So, What is a security token offering (STO)?
Security token offering is a way of raising funds in the Blockchain space by issuing security tokens in return for the funds to the investors. In simple terms, we can say that STO is a regulated ICO. It deals only with security tokens, unlike ICO. A security token can offer a benefit to the investor rather than a utility. STOs need to be compliant with several government Laws to get approved. Security Tokens are classified as securities and surety assets, so they are bound by the securities Rule of the country they’re operating in. In STO, security tokens are developed by real-time assets and contain all the possession information. It provides high security to investors and reduces the chance of token issuers.
Benefits of Security Token Offering:
Hope we are clarified of what STO and the security tokens are. Lets dig into the benefits of launching STO.
How to Launch an STO
Hence, we have discussed How to Launch an STO. But launching an STO is not going to be an easy task. You may have to work on the technical part and the business part. So, to reduce the loads, you can hire a trustworthy STO development company. Out of the many companies in the market, a trusted company is Zab technologies. It is a prominent STO Development company that offers the best services for STO development.
If you are interested in doing business with them, then feel free to connect with their business experts directly via,
Mail-id: contact@zabtechnologies.net
Whatsapp: +91 77085 29089
Telegram: https://t.me/Zabtechnologies
skype: live:contact_86571
So, What is a security token offering (STO)?
Security token offering is a way of raising funds in the Blockchain space by issuing security tokens in return for the funds to the investors. In simple terms, we can say that STO is a regulated ICO. It deals only with security tokens, unlike ICO. A security token can offer a benefit to the investor rather than a utility. STOs need to be compliant with several government Laws to get approved. Security Tokens are classified as securities and surety assets, so they are bound by the securities Rule of the country they’re operating in. In STO, security tokens are developed by real-time assets and contain all the possession information. It provides high security to investors and reduces the chance of token issuers.
Benefits of Security Token Offering:
Hope we are clarified of what STO and the security tokens are. Lets dig into the benefits of launching STO.
- Intrinsic value
- More legitimacy
- More transparency
- More liquidity
- Ability to recover/return
- Access to global markets
- Efficiency and scalability
- STO process is relatively easy
- STOs are relatively cheaper
- STOs are global
- STOs are 24/7
- Institutional investors
How to Launch an STO
- Preparation - Working on the business base.
- STO Regulations - Getting clarity in the legal regulations
- STO Platform - Hiring Blockchain experts from an STO development company to launch the STO platform
- White Paper - Write a white paper to represent the ideas to your investors.
- A Team of Experts - Hiring a team of experts to handle the technical and business needs.
- Pre-STO - Similar to Pre ICO, you can pre-sell the security tokens to the investors.
- STO For Accredited Investors
- Post-STO
Hence, we have discussed How to Launch an STO. But launching an STO is not going to be an easy task. You may have to work on the technical part and the business part. So, to reduce the loads, you can hire a trustworthy STO development company. Out of the many companies in the market, a trusted company is Zab technologies. It is a prominent STO Development company that offers the best services for STO development.
If you are interested in doing business with them, then feel free to connect with their business experts directly via,
Mail-id: contact@zabtechnologies.net
Whatsapp: +91 77085 29089
Telegram: https://t.me/Zabtechnologies
skype: live:contact_86571