What is STO
By definition, a security token offering (STO) is a type of public offering in which tokenized digital securities, known as security tokens, are sold in cryptocurrency exchanges. Tokens can be used to trade real financial assets such as equities and fixed income, and use a blockchain virtual ledger system to store and validate token transactions.
Security tokens are authentication offered to investors to provide validity in order to raise funds. The holder of a security token shall acquire some privileges of possession and be a shareholder of the company. A security token may constitute a stake in the company or be a participant of the LLC. So, in simple terms, when shares in the company are provided in the form of a security token, companies are more likely to attract more investments at a reduced cost than if they had been listed on a stock exchange.
What can be tokenized:
The tokenization of business (shares) is a promising area for STO. It enables you to sell a share or business, entirely. This option is also suitable if you wish to attract additional money for the development of the company.
If you manage an investment fund, STOs can be the best option for you to seek new sources of funds for improving the portfolio. It may help you determine what rights you want to share with investors.
Real Estate Properties
Real Estate Tokenization involves the digitization of properties as the token. These tokens allow agents and owners to sell properties rapidly by fragmenting large property assets into smaller tokenized assets.
Any real asset can be tokenized. Such tokens represent ownership to a specific asset, like precious metals (gold, silver), art pieces and commodities. Real asset token’s value is linked to the real-time value of an asset backing it.
No other way of attracting investment has the same ratio of the cost of organization and carrying out access to the widest pool of investors and finance from around the world.
All sides of the process – both issuers and investors are protected during the sale. Security is ensured by a smart contract and supervisory regulators
Asset tokenization allows you to make assets available for sale quickly with possibilities of fractional ownership.
Security token provides token holders with the ability to track all transactions related to assets.
Legally Compliant Tokens
The smart contracts of the issued tokens comply with regulations of the jurisdiction, offering high security to investors.
Auto Transfer of Dividends
STO is totally digitalized and the dividends based on the investment made will be automatically transferred to the investor’s wallet.
Right to Vote
The token holders are more like the shareholders of the corresponding company and have the right to vote while making decisions over the project.
Security Token Markets and Exchanges are open 24/7. Your tokenized objects are always available to buy and sell, unlike traditional markets.
Global reach and lower fees of the blockchain infrastructure allows for a new breed of investor and the potential for a worldwide investor base. The ability to divide the underlying assets into smaller units, making it more affordable for some investors and easier to transfer, allows for fractional ownership.
List of Security Token Services
Security token Creation
Our Security Token creation process is tailored to the needs of your enterprise. We will carefully analyze every aspect of your business requirements and deliver a token that is in line with those needs. All our tokes are crafted in compliance with the SEC guidelines and the regulations of the relevant governing bodies. We provide three different types of security tokens depending on customer needs:
- Equite token
- Debt token
- Reserved-asset token
STO Whitepaper Development
Whitepapers are an integral part of any successful Security Token Offering. They provide the investors with the necessary information and convince them to buy into the project. We have an elite content creation team that will draft a highly informative, succinct, and attractive whitepaper that is sure to draw investors in. Our highly researched and streamlined whitepaper creation will entice potential investors by a great deal.
STO Website Development
An expertly made website goes a long way in building credibility for your Security Token Offering. With our highly skilled developers on the project, you will have an aesthetically pleasing webpage that provides your investors with everything they need to know to confidently invest in your venture.
Robust STO Portal
We provide a comprehensive portal for Security Token Offering where you can facilitate token sales in an efficient manner. You can also manage the investor’s details, KYC/AML, and other fundraising details.
As an extra layer of security, we also provide a robust KYC or ‘Know Your Customer’ service that will help safeguard against any unauthorized access or transaction.
Being an internationally inclined development company, at Net-IX blockchain, we like to think about the grand scheme of things. We enable our clients with a multi-currency funding capability that allows them to draw in investments from around the world regardless of the currency. Investors will be able to buy security tokens through traditional fiat currencies, as well as cryptocurrencies like Bitcoin, Litecoin, and more.
Our STO Launch Process
first, we lay the foundation for the Security Token Offering through careful planning, researching, legality considerations, and understanding the needs of our client and their project.
Once we have figured out the nitty-gritty details, we will start to put together a highly effective STO campaign. At this phase, we take care of things like website creation, whitepaper drafting, creating the security token itself as well as other periphery work.
Post-development, once we get the approval of the client, we will stage the perfect roll-out to reach the maximum potential investors as possible. Investors can get on-board with a quick and easy smart contract that takes care of everything automatically.
4.Post STO launch
Once the STO has been successfully launched, we will continue to push it even further and ensure its success. We will be there at every stage of the post-launch process to provide support, marketing and maintenance services
STO Road Map
- Identify the territory legal regulations and consult legal firms
- Use case identification
- Ensure the legal licensing of the securities
- Whitepaper creation
- Website development
- Provide the growth hack strategies
Pre STO Engagement
- Publish website
- Publish whitepaper
- Token smart contract development
- POC release
- Start of marketing and PR activities
- Community building and support
- Custodian integration
- Alpha version release
Post STO Engagement
- Exchange registration
- Support activities
- Marketing outreaching activities
- Maintenance activities