Digital profit shares
is the distribution of the total amount of profits generated by the sale of goods or services between the stakeholders or contributors in a tokenized (Sto) event.
Tokenization is a new and frontier method for small and medium sized business to raise capital for expansion. Without expensive bank loans or giving up ownership in a company .
This new model can be used to essentially franchise a specific location on for example a restaurant . This allows the owner or owners to. keep control of the business.
The introduction of digital securities offerings and various versions of Securities token offerings into the financial services sector will not only disrupt the investment landscape, but will also radically disrupt fundraising and Venture capital’s old-school ways as we know it. Forward-thinking startups and SMEs the heart of American business are using technology to long term save time and money.
Tokenization and digital financial instruments in order to be adopted at scale must ultimately benefit all stakeholders by decreasing expenses, being easier to use, standardizing format, increasing compliance and reducing friction for investors globally.
The infrastructure necessary to seamlessly and compliantly conduct an STO is finally hear.
Know Your Customer (KYC), anti-money laundering (AML), and custody solutions directly into a digital securities offering fuel market growth and adoption.
Regulatory compliance can be implemented using smart contracts and transparent record keeping that the blockchain offers. Lockup periods, investor count, and other rules and regulations can be embedded in the token itself. Putting securities on the blockchain allows for accurate management of shareholder lists. Not only is ownership recorded in real-time, but all transaction records from investor onboarding, KYC/AML checks, and secondary trades can be timestamped on a zero knowledge proof blockchain for everyone to see.
The elimination of transfer agents using smart contracts to pay out dividends or other types of distributions. Everything from in-app wallet creation to a US Broker-Dealer Subscription Booklet to investor accreditation is integrated to further streamline the investment process.
Security tokens allow for easier fractionalization of assets and the revenues they generate.
