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All About Security Token Offering: New Market Offerings, Crypto Investments and Private Sector Support

All about STO

What’s the difference between security and utility tokens?

Benefits of STO

  • Safety. STOs are backed by tangible assets, so the true value of your security token depends on some real item. It’s regulated by governments and it is completely transparent but secured by blockchain technology.
  • Liquidity. The main benefit of tokenizing traditional securities is the increase of the liquidity. Tokenization is well suited for low-liquid assets like art and real estate. Such high-value assets can be split into tens, hundreds of tokens,
  • International trade. Another advantage of tokenization is the possibility of cross-border transactions. STO gives an opportunity to invest to traders from all over the world.
  • Regulated. The STO has been certified by the SEC, which means that it is legally traded. And due to the use of blockchain, regulators can track all transactions, and smart contracts determine the identity of the buyer, the time of the transaction, etc

Why do we need security tokens?

Security tokens platforms

Cases of STO use

  • Resort Hotel St. Regis in Colorado, USA sold 18.9% of the resort through STO. Elevated Returns, which owns the hotel, tokenized part of the resort and formed a real estate investment fund (REIT) specifically for this. STO members were invited to purchase stakes in the St. Regis through the purchase of Aspen Coin tokens, which are shares of the fund. Aspen Coin provides owners with the right to receive dividends and the right to resell on the exchange.
  • The Maecenas platform conducts online auctions, where digital certificates (tokens) are presented as a lot, symbolizing shares in art objects. These tokens are freely traded on the exchange and their value reflects fluctuations in the price of the underlying object. If the painting is bought out in its entirety, the profits are distributed proportionately among the co-owners.
  • Spice VC is one of the first tokenized venture funds. Instead of raising funds in the traditional way from a limited number of investors, the fund raised $15 million in one month by issuing and selling its tokens to many people through an STO. Fund managers invest the collected funds in blockchain startups. In the event that the fund sells positions in portfolio companies, the profit is distributed among investors in accordance with their shares, i.e. the number of purchased tokens.

The future of security tokens



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