The STOs are securities tokens that take their value from real-world assets and reliably use them to attract investment and capital to your business or start-up.
The STOs, often referred to as a variant of ICOs, are generally subject to regulations and it is necessary to comply with local regulations to issue them. The STOs are considered securities under the Howey Test in the United States. The STOs are the latest innovation in the Blockchain revolution. Funds raised from STOs have already reached hundreds of millions of dollars. As an important source of funds for start-ups, STOs serve as a safe and secure way to earn return on investment and expand capital. STO’s are groundbreaking in the field of crypto, as they provide investors with tangible legal rights to which real financial products are subject. The STOs are produced in digitally programmed and unalterable blockchain networks that take their value from real physical assets. They have the ability to make profits, pay dividends and invest in other tokens, depending on how the underlying tokens are programmed. The STO is a real alternative to capital and is maintained in a reliable decentralized system provided by blockchain.
As the STOs become a more attractive crowdfunding option, their revenue capacity is already expressed in trillions. As their investment capacities grow properly, it is redefined what entrepreneurs and newly established companies can do. STO’s also solve many problems that ICOs present, such as market manipulation and insider trading.
The STO issuance is possible in regulated markets. In this context, it gives confidence to the investors. Issuing unauthorized securities tokens may be subject to judicial and administrative sanctions. If you need technical or legal support to issue securities tokens, Menacrypto will support you with the latest tokenization technology to help you with your STO platforms tailored to your business needs.