Security Token Offering Services in Singapore

Posted by Viraj Sarode on July 15th, 2019

Security tokens are Cryptocurrency tokens that pass the Howey Test. These crypto tokens usually derive value from a tradable external asset. Security tokens are subjected to federal securities and regulations and hence deemed as Securitized tokens. Security Token Offering is always built to increase the investors' trust to invest in various projects.

We are the market leaders in Blockchain Technology and Security Token Offering Services. Our adept team has extensive experience and also they are now expertise in developing a cryptocurrency, Be it a utility or security tokens that have helped numerous organizations that achieve their goals. Based on the distributed ledger technology, TokyoTechie.com has built a cutting-edge state-of-the-art security token issuance platform.

Security Token Technology

The Ethereum Blockchain with ERC-20 does not suffice the requirements of the security backed tokens. The major issues include gas prices, congestion in the networks also protocol issues. To overcome these issues, TokyoTechie.com is the best Security Token Offering Company in Singapore which develops customized scalable blockchain and smart contracts to fit the requirements either on Ethereum or Hyperledger or Stellar.

Following are the features :

Legally Compliant Tokens

The tokens issued are embedded with a smart contract that has the rules and regulations of the registered jurisdiction coded. These include legal frameworks of fund-raising, investor qualification rules and also transaction limits on transfer.

Global Investor Participation

At Present Issuance, companies face problems during secondary trading when different countries are involved. Our tokens can be traded across borders with the idea that the tokens issued are secured and must comply with securities laws. The token sale and secondary trading are developed with conditionality on that smart contract.

Transparency

Blockchain ensures all types of transactions including the conditional are visible to the financial regulators. The benefits of a transparent ecosystem are the cryptocurrency market under the purview of government regulation. The process of transfer agents is being automated the entrepreneurs can raise funds in a simpler and cost-effective way.

Wallet

At TokyoTechie.com, we develop a technology that allows the issuance companies to reissues tokens to the investors if the investor loses their wallet keys subject to terms and conditions. The wallet must compatible with the legal requirements and investors must have the right to reclaim his lost tokens.

Type of STO Development

Equity Token

An STO where each token is backed by the stock in your company so that the holders of your token have equal rights to your actual stockholders in terms of voting and dividend issuance.

Reserve Assets Token

Companies that trade in real-world commodities like Gold, Real Estate, etc., can launch an STO through us where the tokens are backed by your reserve of the said assets and expectations.

Debt Token

If your company would rather not tokenize your stock or reserved assets, you can raise funds by issuing Security Tokens with the promise of payback to attract debt investors.

Steps for STO Development

Step 1

Finding the securities which the issuance company to tokenize such as commercial estate. We at TokyoTechie.com carry out our due diligence for tokenization.

Step 2

Our auditing, financial and legal consultants form the core of our security token advisory team will advise on the jurisdiction checks with regards to the on the securities titles such as credit ratings and any other parameters specified by the owner.

Step 3

An Entity is formed especially when tokenizing securities for only particular the purpose of trading security tokens.

Step 4

The technology behind Tokenized Securities is the strength of TokyoTechie.com. We believe ERC-20 is not an ideal solution for STO due to the gas prices, congestion of networks and changes in protocols. TokyoTechie.com will build customized blockchains with inbuilt smart contracts on top of the Ethereum or in Hyperledger or Stellar.

Step 5

The valuation of these securities are scrutinized by an auditing firm, post-which a value per token is suggested and the issuance company such as yours can issue a token at that price.

Step 6

Once the token will be developed with regulations embedded into the smart contract, a dashboard will be provided for investor management for the issuer and fund management for the investors. The dashboards including  KYC/AML, Accredited Investor verification and voting rights in-built for investors and project owners.

Step 7

The tokens are offered through a Security Token Offering (STO) for investors to purchase a legally compliant token under the framework of the legal requirements. As the smart contract ensures the automation of regulatory requirements, there are no requirements of third-party intermediaries such as transfer agents.

Step 8

Once the STO is completed, the token is to be listed on the Security Token Exchanges for investors to trade on the secondary market. These can be also be traded through Over The Counter(OTC) where the accredited investors can trade directly with the token holders.