We believe STOs are the next wave of IPOs, and we will provide the technology and services to enable smaller and medium companies to do STOs instead of IPOs.
We are in the centre of finance in Europe, in Liechtenstein. We are in a co-working space of CV Labs in Vaduz where many projects are on the same mission, have the same values we are finding many synergies. We want to support them by offering our services, either, offering the STO for them or the secondary market for the trading of those security tokens. Vaduz gives us direct access and unique position in highly modern financial services centre which is particularly distinguished through significant political and economic stability, banking and professional secrecy.
A fintech trend that is picking up speed is the security token offering, STO for short. Security tokens are an upgraded and highly regulated digital version of traditional securities. For entrepreneurs, STOs are an easy and relatively inexpensive way to raise capital. For investors, STOs offer a secure and transparent direct investment in a company.
STO stands for security token offering; they are financial instruments. Similar to an initial coin offering (ICO), an investor is issued with a crypto coin or token representing their investment. But unlike an ICO, an STO represents an investment contract into an underlying investment asset, such as stocks, bonds, funds and real estate investment trusts. As such security tokens offerings distribute securities, they are fungible, negotiable financial instruments with attached monetary value, like a part of company or property.
STO’s are not traded on regular token exchanges. The exchanges that want to offer security token trading need to comply with regulations and Blocktrade is one of such trading platforms.
When you invest in traditional stocks, the ownership information is written on a document and issued as a digital certificate (like a PDF). In the case of STO’s, it is the same process, but the information is recorded on a blockchain and issued as a token.
