Security token Offering is an evolution of ICO. Where ICO is not government regulation for raising funds. But, STO overcomes the regulation drawbacks of ICO.
STO- Digitized Traditional Security:
Security tokens are acts as a traditional securities in the form of digitized manner.
You know the value of security, If you are a participant in stock market, bonds, realestate, CD and etc. For example, a security token would simply replace your paper stock certificate with a digital version.
Security token offers simply your digital proof of ownership for security in underlying digital asset. The Benefits of STO is tradable on global marketplaces, giving security tokens a level of liquidity that which would be more powerful than traditional securities.
STO with smart contract:
The smart contract is a simple digital program to automatically execute once a specified criterion is satisfied. Security tokens are executed with a number of smart contracts. Eventually, Smart contracts are written with the programs like how the token can be bought, sold and traded in a compliant way. Those tokens run on the blockchain technology those transactions are digitally transparent, traceable and immutable.
So, the perfectly coded Security Token makes it virtually rejects anyone to buy, sell, or trade the security token in an illegal way.
So, the perfectly coded Security Token makes it virtually rejects anyone to buy, sell, or trade the security token in an illegal way.
STO More Liquidity:
STO offers a global liquidity for trading. So, It would be considered as a most valuable asset. Security Tokens have the tendency to denote the fractional ownership of an asset and to ability to trade on global security token bitcoin marketplaces and bitcoin exchanges platforms.
More Enhancements over traditional trading:
Securities are maintained by the combination of excel spreadsheets, lawyers, paper documents, custodians, intermediary agents, and accountants. They takes up a lot of time and money but the possibility of getting human errors.
Security tokens can also be performed automatically and evolve the output in any events associated with holding the security, such as distributions with blockchain technology.
Security tokens can also be performed automatically and evolve the output in any events associated with holding the security, such as distributions with blockchain technology.
Trustable blockchain:
Due to the digitized pattern, There is no need for any one party to trust the other when transacting via a security token. All transactions associated with a security token (issuance, buying, selling, trading, etc.) are recorded on the blockchain , Everyone just trusts the math rather than human., which is considered a “trustless” system due to the fact that blockchains are public and immutable in their record keeping.
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