Blockchain App Factory, a pioneer in providing end-to-end solutions for tokenized securities lists down three important factors for Security Token Offering.
SINGAPORE, December 08, 2018 /24-7PressRelease/ — Blockchain App Factory, a pioneer in providing end-to-end solutions for tokenized securities lists down three important factors for Security Token Offering.
Security Tokens are the next big phenomena in blockchain related crowdfunding with the industry expecting the market size to exceed $2 trillion dollars by the end of 2019. Blockchain App Factory’s legally compliant tokens ensure crowdfunding happens within the regulatory framework for various jurisdictions across the globe.
“We have compiled more than 12 requirements to start a security token. We have narrowed it down to 3 major criteria; Security Token Architecture, Legal and Marketing,” said Ramkumar S, Director, Sales & Marketing, Blockchain App Factory.
Security Token Architecture
The company are currently tokenizing three real estate projects on Hyperledger Burrow and are in amidst discussions with one of the largest art galleries in Europe to develop regulatory compliant art tokens. Technologically speaking the security tokens are one of the most sophisticated solutions involving blockchain and smart contracts.
By engaging financial, auditing and legal experts, Blockchain App Factory ensures that each non-fungible token is compliant to the regulations of the jurisdictions of more than 150 countries. In addition, the portfolio management dashboards have inbuilt automated KYC/AML, Accredited Investor Verification, and Voting Platform.
“We have been working on a compliant token ecosystem for the past year. We wanted to look beyond Ethereum for the blockchain and work on Hyperledger Burrow. Though Ethereum helps in standardization, Hyperledger is highly investor friendly with instant transactions and no issues of gas prices.” – Arjun Reddy, Chief Technology Officer, Blockchain App Factory
Institutional investors have started to recognize the crowdfunding campaigns through the so-called utility tokens which are actually securities. This mindset has ensured Security Token Offerings are legally compliant within the regulatory framework of various regulation. The regulators are open to a legally compliant blockchain based tokenized crowdfunding for raising funds for projects.
ICO marketing companies helped organizations to raise funds by promising over the moon returns, pushing the boundaries of the returns which can be achieved. However, STO Marketing is a completely different ball game. Every solicitation for investment must be carried out without violating any of the regulations put forth by the financial authorities.
With end-to-end solutions coupled with financial, audit and legal consultants, Blockchain App Factory will push for adoption of Security Token Offering ensuring a regulated, transparent and investor-friendly way to raise funds with Blockchain
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