4 Benefits of Security Token Offering for Security Token Issuers.
Issuing security tokens through programmable code also known as smart contracts using the Blockchain comes with tons of benefits for small businesses that plan to tokenize their company’s equities. Some of these are legality, functionality, liquidity, affordability, and much more.
Security tokens are regulated financial securities just like stocks. Whitelist0x isn’t claiming to be a law firm but it does leverage its extensive partnerships with securities attorneys from the U.S., Canada, U.K., and specific European Countries such as Germany to provide security token issuers express SEC, CSA, FCA, and BaFin filing solutions.
As BIG as Amazon is, there’s literally nothing the Company’s shareholders could do with their AMZN stock than trading. Also, while traditional utility tokens cannot act as securities, security tokens can act as utilities. With the help of the smart contracts, an issuer could choose to use their security token as a payment method on their platform, voting rights, network gateway, loyalty programs, etc.
Depending on the jurisdictions chosen, with security tokens, issuers have got an absolute control of creating more liquidities by allowing not only international investors but also listing their securities on various exchanges.
Compare to launching an IPO or other security token platforms, issuer’s affordability journey with Whitelist0x starts from approving their proposal to launching their public relations, fund marketing, and investor relations campaigns to drafting their offering memorandum, filing with the SEC to creating, issuing, and listing their security tokens.
Whitelist0x is what it is :: a Whitelisting Firm. That says it all. However, there’s more beyond the name. Whitelist0x focuses on helping small businesses go public to raise funds via the security token offering mechanism. Unlike similar security token platforms that only offer technical solutions, Whitelist0x enables private companies to launch extensive public relations, integrated marketing, and investor relations campaigns, draft various offering documents such as prospectus, file with securities regulators in the U.S. and various other jurisdictions, and then issue security tokens that represent shares and allow shareholders a stake in their company’s equity as well as a share in their profits in form of dividends, interests, and so on.