Blockchain App Factory (BAF) announced this week the launch of an STO-in-a-Box service. The company has supported platforms planning to tokenize their assets, including the tokenization process, compliance, investor management, and fundraising.
STO stands for security token offering and it is a form of capital raising similar to that of an initial public offering (IPO) and initial coin offering (ICO). The process revolves around blockchain-based security tokens that are supported by tangible assets including company shares, commodities, and real estate. Tokens may give holders voting rights and dividends based upon stipulations in the smart contracts.
The BAF focuses on compliance, ensuing that customers are able to complete successful STOs. According to the platform, clients are able to tokenize equity, reserve assets, and debt. The BAF STO Fundraising Dashboard also has a control panel that token issuers, regulators, and investors and use so that users can monitor every aspect of the token, including dividends, voting rights, and secondary market transactions.
The platform also provides support when it comes to promoting STOs and it ensures that security tokens are tradeable on the secondary markets. With this system, parties can be certain that accredited investors are the only ones trading the tokens.
James Harper, the BAF sales directed stated, “Governments have come to an understanding that the only way to control a market disrupted by cryptocurrency fundraising and blockchain development projects is to allow a mechanism with similar goals but something that they can regulate. STOs will become a mainstream way companies raise funds from the public in less than a decade.”
Even though excitement for ICOs has been decreasing, there has been a growing interest in security tokens. Retail investors are unable to access many STOs due to regulations, which is an issue.