Security token development services
Develop a security token in compliance with SEC guidelines and your country’s regulations
What are security tokens?
Security tokens are digital, liquid contracts for portions of any asset that already has value. These can be assets such as a car, stock in a company, and even real estate.
A Security Token Offering was initially created in order to help migrate institutional investors into the cryptocurrency and blockchain sphere. However, with time, companies have found this offering as a good opportunity to raise capital from any purchaser that wants to be part of the company’s vision.
When a security token is created, investors expect to have their ownership stake preserved on the blockchain ledger. In addition, oftentimes, STO (Security Token Offerings) is subject to federal securities and regulations. Once a security token has been registered with the CSA or SEC, investors have more trust in the company and the future success of the token.
Security tokens are financial securities that are SEC and CSA compliant.
Security tokens provide investors with financial rights, such as:
Dividends
Profit sharing rights
Equity
Buy-back rights
Dividends
Profit sharing rights
Equity
Buy-back rights
Types of security tokens
Equity token
Backed by your company stock, allowing holders of your token to have equal rights as your current stockholders. This can be in terms of dividends, profit-sharing rights, and voting. Currently, this is the most common security token offering.
Debt tokens
You can raise funds by issuing security Debt Tokens with the promise of paying back to attract debt investors. This is often the route for those companies who do not want to tokenize their stock or assets.
Reserve assets tokens
Reserve Assets Tokens are tokens that are backed by your company’s reserve of the specified asset(s). If your company trades in real-world commodities like Real Estate, Silver, Gold, etc., this may be a viable offering route.
Security token technology
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Tap into the securities market with our security token development services and create a new revenue stream for yourself.
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