Moving Your Real-time Assets to Blockchain
Technology breakthroughs happen all the time. However, nothing has prepared the world of business for the pervasive impact of the blockchain. The use of blockchain first started with cryptocurrencies, and then startups began to realize the potential of ICOs to raise funds, without the help of banks or venture capitalists.
The popularity of ICOs also exposed the vulnerability and risk exposure of investors, who typically invest in utility tokens on the basis of a future product or service; not on real-world assets. Another vulnerability is the total lack of federal security regulations with ICOs.
As with every technology or industry, a shake up is bound to happen. Security tokens are now preferred over utility tokens and ICOs have evolved to Security Token Offerings (STOs).
The world is filled to the brim with tangible assets, such as gold, oil, real estate,equity, and much more. Security tokens are backed by such real-world, tangible assets. STOs are typically initiated by companies that have a proven performance track record in business and established products and services. So, the value of their security token is dependent on the performance of the attached asset. Additionally, STOs are governed by federal regulatory bodies and non-adherence to these regulations has huge repercussions for the company.
Benefits of Security Tokens
Security tokens provide a number of significant changes to mainstream financial products by taking intermediaries, such as banks, out of the equation. The eradication of intermediaries enables lower fees, accelerated deal execution, bigger investor base, automation of transactions, and much more.
Another major advantage of security tokens is that they are governed by federal securities regulations and they have to be compliant right from the start. For example, US-based security tokens have to adhere to the guidelines specified under Regulation D, Regulation A+, and Regulation S of the Securities Act of 1933.
Blockchain App Factory has always been ahead of its competitors in the blockchain development space. In fact, we clearly understand the future impact of STOs on the world of business. What we would want you to do is take advantage of our vast experience and technical know-how in blockchain through our Security Token Offering services.
Our holistic, need-based STO development services can accelerate the move of your company assets to the blockchain. If you think you have missed the blockchain bus, get in touch with us and find out how we can bring you up to speed.
https://security-token-offering-services
