Security Token Services
Techracers has attained a niche position in creating and developing personalized blockchain solutions for more than 50 clients. We conceptualize and develop blockchain based solutions for compliant issuance and management of security token offering [as per the needs of the issuer]. Our adept team has expertise in developing security tokens solutions and implementing effective strategies for your STO Launch. We offer an end-to-end platform to issue, manage and trade security tokens on a decentralized marketplace.
Liquidity & Asset Digitization
Security Tokens are deemed to be more stable and have the capacity to symbolize fractional ownership of a particular asset. They bring liquidity and eliminate administrative burdens of traditional private securities. The assets with higher value ETFs, gold funds, bonds, equities, stocks get can be digitized can further transacted through security tokens.
We have helped businesses reap tons of benefits when seeking to tokenize their company’s equities. We ensure automated trade regulation by embedding compliant rules in the token itself. Our STO platform solutions are modular to support multiple restriction rules that can be managed dynamically as per the requirements of the SEC or the issuer.
What is a Security Token?
Security Tokens are utility tokens that are backed by real assets such as oil, gold and real-estate which appreciates over time if the underlying asset increases in value. They offer a more transparent fundraising solution not only for the investor but also for the regulators. With these in hand, the founders need not invest in a use case to raise capital.
Difference Between Utility and Security Token
|UTILITY TOKENS||SECURITY TOKENS|
|Failed the Howey Test||Passed the Howey Test|
|Unregulated Token Sales||Regulated Offerings|
|Investors purchase products and services in advance||Hodlers gain profit sharing rights|
|Not subjected to various SEC regulations and federal securities||Subject to various SEC regulations and federal securities|
|Ownership of Asset||Access to Protocol|
|Used to access provided services||Used as an investment vehicle|
Types of Security Tokens
Security tokens can be of different types based on the asset they are being traded against. They comply with practices like KYC and AML and allow businesses to raise funds from investors in a crowdfunding mechanism.
Equity tokens allow investors to register themselves as part owners of the company and receive a percentage of voting rights.
Reserve Asset Tokens
These are tokens that are backed by real-words assets such as real-estate, gold, oil etc.
These are the tokens issued by the company to debt investors when they are not backed up with real-world assets or equity but promise to payback.
WHY SECURITY TOKEN LAUNCH?
24 X 7 Markets
With STOs you can expect expanded trading hours as “always open” is the de facto standard for exchanges in a blockchain ecosystem. The current systems does not facilitate around-the-clock trading and often involves human intermediation.
An STO will represent the company’s stock and therefore it allows investors to own fractions of highly valuable real-world assets.
Democratized Access to Capital Markets
Tokenized securities bring refinements as the investors and issuers both will benefit from this. With Security Tokens, the legal documentation also becomes more standardized and you can access an international pool of capital.
Automated Investor Rights
In an STO ecosystem, the Investors get Automated Dividends which are nothing but distributed payouts which gets credited directly to the wallet. They also get profit sharing rights and programmable equity in the form of tokens which in turn gives them complete control over illiquid assets.
Security tokens can be traded freely and therefore they are subject to secondary trading restrictions. They offer well-regulated way to fractionalize a single high-value asset thereby setting a benchmark for liquidity.
Reduced Cost & Faster Execution
Security Token Offerings provides faster execution and eliminate the need of the middlemen or financial institutions ,which therefore shift the responsibilities onto the buyer or the seller. This will likewise translate into a substantial decrease in cost and time to market.
Security Token Offerings (STO) are fully compliant with SEC regulations and it means that they pass the Howey and other alternative tests that all the traditional securities need to pass.
Adding regulations and enabling regulatory compliance in the token ecosystem can use up a lot of gas when it comes to even normal transactions. Developing your own blockchain can solve these problems by maintaining the decentralised trustless network along with zero monetary concerns.
Techracers end-to-end Security Token Offering Services
Our STO development services are focused on Token creation, Visual and technical designing, Code testing and Audits, blockchain migration to a new platform, Manual and Automated Testing, fully integrated KYC/AML platform development. Our solutions grant companies the ability to raise funds.
- Custom Ethereum Token
- Token Wallet as per Regulatory Protocol
- Own Blockchain
- Automated KYC/AML Integration
- Automated Accredited Investor Verification
- KYC/AML Records Registry
- Accredited Investors Registry
- Funds Raised & Investment Details
Token Lifecycle Management
- Stakeholder Registry
- Integrated Voting Rights Platform
- Investor Management Dashboard
- Regulation Management
- Portfolio Management for Investors
- Token Management
- Integrated Dividend Issuance Platform
- Integrated Help Desk on Dashboard
- Audit Reports & Checklists
- Event Announcements
We ensure that these rules and regulations are embedded in the token ecosystem to facilitate secure investor management and compliant management of security tokens. Moreover, our STO platform development services allows token issuers to focus on their business concept, marketing, and all the other aspects of security tokens without needing to be concerned with any of the many technical challenges.
Standard protocol for token creation
We provide token infrastructure solutions which will allow your STO platform to significantly improve user experience while providing extra security. We employ mechanisms into our smart contracts which only Externally Owned Accounts to sign messages using their private keys and allow interactions only from the accredited investors in your network.
ERC 20 Compliant
The permissioned security tokens are based on ER C20 standards making them ethereum wallet compatible
ERC 725 and ERC 735
These identity management standards are crucial in establishing investor restrictions based on security token requirements
Our STO Development packages
|Base Package||Customized STO development package|
|Custom Token Creation (Eth)|
High-end customization based
on your platform requirement
|Automated Accredited Investor Verification|
|Smart contract (Development, Execution and Maintenance)|
|Helpdesk Integration on Dashboard|
|Owner’s Manual (Whitepaper)|
|Support plan (Live Chat/ Email Support)|
Our team will guide you through the best process for your STO launch. Providing an all-inclusive development support which is customized to meet your fundraising goals. From conceptual STO development, smart contracts to website development and deployment, we can help you maintain the entire infrastructure of your STO.