The next wave of Security Tokens Offering “STO” has arrived replacing ICOs as the preferred means of raising capital. STOs are an entirely different proposition, they are more complex and formed by creating and issuing a financial instrument as an asset backed token where the company is the primary issuer.
An STO is typically engineered as a share in a company, representing ownership of an asset, an entitlement to an income stream that requires a full understanding of tokenomic engineering, company valuations, regulatory frameworks, investor rights and entitlements and comes with reporting and treasury obligations.
There are essentially three types of Security Token.
Equity Tokens: where each token is backed by the shares in your company so that the token holders have equal rights as shareholders in terms of votings and entitlement to receive dividend, royalties or share of profits.
Asset Backed Tokens: where the business operates with real-world commodities such as Gold, Oil, Precious Metals, Art, Land & Real Estate etc., a token can be issued that are backed by the underlying assets.
Bond or Debt Token: where the token represents a bond or debt instrument that comes with the promise of a payback, interest and other rights for investors to convert to equity.
We help founders prepare their projects to launch an STO and guide the team through the complex path of creating a new financial instrument that investors can buy. Whether the ambition is to sell the tokens through Private Placement to accredited investors or to sell tokens to the crowd through a Public Offering.