Security Token Offering Services

Posted by Viraj Sarode on August 26th, 2019

Security Token Offering Services

Security tokens are Cryptocurrency tokens that pass the Howey take a look at. These crypto tokens sometimes 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.

Security Token Technology

The Ethereum Blockchain with ERC-20 doesn't suffice the necessities of the security backed tokens. The major problems include gas prices, congestion in the networks also protocol issues. To overcome these problems, TokyoTechie.com is the best Security Token Offering Company 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 which 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

Our tokens will be traded across borders with the concept that the tokens issued are secured and should comply with securities laws. The token sale and secondary trading are developed with the state 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 which 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 investor 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 which 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.

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 created particularly once tokenizing securities for only specific the purpose of trading security tokens.

Step 4

The technology behind Tokenized Securities is that 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 can build customized blockchains with inbuilt good 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.