Security Token Offerings by STOBox Platform
What you should know about tokenization?
Tokenization, without doubts, becomes new big trend in crypto industry and world of finances. What did you miss, why it’s become popular and what you need to know about tokenization, security tokens and security token offerings?
What is the tokenization?
In a nutshell, tokenization is a process of converting almost any type of assets into tokens. This digital copies of assets recorded in blockchain and then could be traded, shared, gifted, hodled… In could be a physical object like piece of art or house and even intangible object like credits and interests.
Who need tokenization and why?
Tokenization is optimized for: companies, individual and corporate investors, real estate and hard assets. Doesn’t matter you are an early stage startup or even international company, looking for security tokens leverage solution. It is also efficient tool for fund managers, trying to create funds. Or even for real estate developers, asset managers and investors looking for how to tokenize assets.
Tokenization provides some serious advantages. At first, it’s shorter than the IPO, more compliant than ICO, and able to attract large institutions and investors to enter. At second, it provides lowering the investment threshold, giving ordinary investors possibility to participate. At third, it globalizes the market and increase liquidity — because global investors can invest and make it easier than traditional ways.
Stages of tokenization process
One of the advantages of tokenization is that it provides more compliance than usual ICO. That’s why the first you need to have is legal framework for Security Token Offering (STO):
- Entity incorporation and bank account in honorable and regulated jurisdiction;
- Filing within the SEC: Reg 0 (Rule 5066: 506c): Reg CF: Reg 5: Reg A+;
- Agreements with the Investors (Private Placement Memorandum. Sales and Purchase agreement);
- KYC/AML processing for investors and verification of accredited investors with verification letter obtaining.
Second stage is technical implementation of STO:
- KYC/AML whitelisting;
- Token Smart Contract development with security token standard supported by OTC Platforms;
- Solution for accepting fiat and crypto currencies.
Third stage is operational management — consulting, networking & investment relations:
- Structuring of a deal according to the business model;
- Looking for security token exchanges and OTC platforms listings;
- Make partnerships & introduction to STO ecosystem players (brokers/dealers, custodians, exchanges).
Evolution of fundraising and trading
Tokenization makes fundraising easier, faster, cheaper.
Your security tokens are available for global investors from, so you can get access to bigger investments all over the world. Also, it provides liquidity.
When investing in venture fund people need to wait for a years when they can exit with profit. Tokenization allows to make it faster and easier — actually, wherever you want.
At traditional finances you need at least two days to settle your trade. You need to tied-up your cash, to get some expenses, to take risk of short-selling or even insider-trading. Security tokens provides you near real-time settlement. It’s cheaper and safer.
All-in-one Security Token Platform — STOBox
Regarding a lot of technology providers and security token exchanges, there are still few all-in-one solutions in this industry. STOBox platform focuses on providing security tokenization services for technological startups and small/medium size enterprise. They provide a complete solution by arranging equity crowdfunding, private placement or existing cap table with tokens for your blockchain company. Using their knowledge and expertise in technology, marketing, legal and capital raising, STOBox helps you analyze, explore and apply security tokens to get access to global investors and improve your business, ensuring a successful STO.
Learn more on: www.stoboxplatform.com
Author: Gene Deyev