Explore About Security Token Offerings In Detail

With the rising numbers of investors in Crypto market, the demand for Security Token has also increased. According to some experts, the worth of Security token market would reach about $24 trillion in the next 5 years. Now this blog will help you know all about STO development and the perks that it brings to its investors.

What are Security Token Offerings (STO)?

 

Security tokens are blockchain powered crypto tokens that encloses tangible and tradable assets such as shares, dividends, land, gold and so on, to raise fund from accredited investors all over the world. These tokens benefits the token holder with certain rights such as dividend, profit sharing, voting right, buy-back right and much more, to build the trust of the international investors to invest for your business. As the security tokens are subjected to the federal rules and regulations of respective government, it gives more credibility and security to the investors as well as the token issuer.

 

Different Types Of Security Tokens

 

Below mentioned are some of the major types of Security tokens.

 

1)Equity Token

2)Debt Token

3)Assets-Backed Token

4)Utility Tokens

 

Advantages of STO

 

1)Opportunity to attract capital from around the world.

2)Allow you to increase the liquidity of any asset.

3)Automatic execution is easily possible through smart contract.

4)Security tokens provide fractional ownership.

5)Enables to have access on interoperable assets.

 

If you are intrigued to know more about the business perks of STO token development, get in touch with Developcoins, a leading token development company.