Blockchain App Factory Moves Introduces Security Token Services
The premier tech and solutions provider for blockchain startups, Blockchain App Factory, has announced new services targeted at Security Token Offerings (STOs).
This article is provided by Bitcoin PR Buzz
Having built its reputation as an end-to-end permissioned solutions company, Blockchain App Factory has now moved into the emerging sector of security token and white label exchanges, offering to develop such features for blockchain startups.
Security tokens on blockchain
Token generation events have defined blockchain development for the past several years, but this method lacks financial transparency and has attracted regulatory attention, due to the prevalence of fraud, pump and dump schemes, and exit scams.
The need for safer space for institutional investors has given birth to the idea of Security Token Offerings as a means to stabilize and legitimize crypto.
Director of Sales & Business Development James Harper spoke of the multiple challenges presenting themselves to the ICO industry, with a severe lack of clarity for startups preventing institutional interest in investment:
“And so there is a hesitancy among the institutional investors to invest in ICO, solely because of the non-regulatory compliance, lack of financial transparency and the volatile nature of the market.”
Security tokens help digitize assets such as real estate, security bonds and equities, which are otherwise illiquid. They are also presented as clearer in legal representation, better able to protect companies and investors via strict adherence to regulations.
Despite their advantages, few platforms exist to create such STOs easily, and there are only a few exchanges that can be trusted to manage the trading of these tokens, as they require high levels of compliance with AML, KYC, including profit/loss statements on smart contracts, which are required for creating STOs.
From IPOs, to ICOs, to STOs
Blockchain App Factory is now working with a company that almost went down the route of an IPO in Singapore. Despite backing from one of the largest equity investment firms, the company has scrapped those initial plans and is now considering fundraising with blockchain tokenization with Blockchain App Factory.
The evolution to STO has resulted in a more secure platform that is also more reliable. Through the development of Security Tokens and a Whitelabel Exchange, gas price limitations have been removed.
Harper commented that this move will convince many companies to delist from traditional stock exchanges and transfer to blockchain, due to the prohibitive entry requirements such as high costs for regulatory compliance:
“Traditional methods of raising capital like Venture Capital, Bonds, Stocks will be tokenized. We expect real estate especially the commercial real estate will be the first movers into the STO market.”
With the hundreds of billions of dollars already raised with the ICO and token sale model, STO promises to do even better with a trillion-dollar market.
Leading securitization of tokens
Driven by innovation, Blockchain App Factory are a company built on the 118-year old experience of international supply chain management with Li & Fung, serving over 25 clients in blockchain and crypto-related fields. It handles almost 9 million deliveries every day, all using automated supply chain execution, and manages a crypto exchange startup in a blockchain conducive environment.
Image via Blockchain App Factory
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