Polymath CPO Explains Why Security Token Offerings (STOs) Potential is Far Greater Than Most Realize
According to the investors within the crypto space, they believe that security tokens are making a little more sense than the utility tokens.
According to the Chief Product Officer of Polymath (POLY), Thomas Borrel, getting the paper equity tokenized might actually miss the point. He says the security tokens that are in the market seem to be having more potential when it comes to the global finance sphere than most of the bullish investors in the market might realize.
“Paper equity tokenization doesn’t really add anything,”
Borrel told an audience at Blockchain Expo, in London today.
The Polymath Network Has Made The Issuing Of Equity Much Easier
The Polymath network is specially designed for the use of security tokens. That means, the projects in the market are able to launch an STO and go ahead to issue equity, all this is done in the form of the regulatory compliant of the ST-20 tokens.
The platform was launched last year in August, and at the time it only had five STO’s. Since then the platform has been able to see some positive progress when looking at the number of projects that have embraced their token sales service. At the moment the platform has been able to acquire more than 116 security tokens.
The Benefits Of Having The Security Tokens In The Market
Tokenizing of equity can solve some of the significant problems that are in the market and be in the position of creating new value.
A good example would be the overhauling of vesting schedules. Instead of having employees within a company receiving their stock options once a year or in every quarter, this can be paid daily. The company will be able to pay the employees the equivalent amount.
The benefit of this is, it will likely reduce the number of employees who are quitting their job; it’s like every day the employee is being bought into the company. As a result, it is a better incentive to use if you are looking to keep your employees motivated.
The concept will slowly get adopted as more regulators provide a legal framework for the digital assets. Therefore, we should soon see more established players in the market experimenting with the security tokens.