A New Class of Investment

Security Tokens are the result of connecting the regulation and compliance of traditional securities with blockchain technology. Like traditional securities, they represent ownership interests in assets; the main difference, however, is they’ve been created digitally (tokenized) to unlock the power of the blockchain. Security Tokens can represent the ownership of traditional assets like publicly traded equity and bonds, or traditionally illiquid assets like private placements, real estate, or artwork. Security Tokens can be issued at any stage (startup to IPO) and used to raise funds through a Security Token Offering (STO).

What Are Security Tokens?

A Security Token is a financial instrument that represents evidence of an ownership interest in an asset; the difference is they have been created digitally (tokenized) to unlock the power of the blockchain. Security Tokens can represent the ownership of traditional assets like publicly traded equity and bonds, or traditionally illiquid assets like private placements, real estate, or artwork. Security Tokens can be issued at any stage (startup to IPO) and used to raise funds through a Security Token Offering (STO).

Why Security Tokens?

Security Tokens significantly improve inefficient, ineffective and old real-world functions tied to the creation, issuance, and ongoing management of securities, asset securitization, and corporate actions. 

Efficiency. A tokenized cap table ensures reduced overhead, admin work, and transfer times. Security Tokens can remove legacy middlemen while improving processes like dividend issuance, voting capabilities, and liquidation preferences.
Transparency. A perfect record of ownership can be shown at any time with all transactions shown on-chain. This ensures investor protection and mitigates the back-dating of documents or other types of foul play.
Automated Compliance.Security Token smart contracts mean programmability enforced jurisdictional regulations are built-in. That means functions like sell lockups, maximum number of investors, or contribution caps on non–accredited investors can be engineered into your Security Token.
Liquidity. An ecosystem of exchange partners gives access to new and global investor pools to bring more exposure and opportunity to your token, while hyper-fractional ownership means Security Tokens can be divided in ways traditional securities can’t.
New Asset Class. The ability to raise capital from an expanded pool of professional and accredited investors through new and innovative financial products designed to fully utilize the liquidity benefits of true digital securities.
Liquidity. Hyper–fractional asset ownership, tokenization of traditionally illiquid assets, and access to global investor pools.