STO in the Financial Industry

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Blockchain Protocols Security tokens are not tied to a single Blockchain protocol. To issue an STO, an issuer must choose which Blockchain protocol will be used to develop the token. As of today, the majority of security tokens are being built on the Ethereum Blockchain , as its popularity is well recognized, however, there are more and more different protocols that are entering the market and offering different features, allowing developers to create security tokens and associated smart contracts, which can be represented through different Blockchain protocols.


What is a security token offering or STO? - Image Broadcast ID Number List platforms Today there are numerous platforms where security tokens can be created and distributed, known as issuance platforms. These platforms focus on creating regulated smart contracts that can be used as a representation of a securities offering . Most of the current platforms available continue to operate in silos and this means that they have to reach a consensus on how to issue a security token under a common standard.





Security Token Exchanges To facilitate security token transactions and provide liquidity to investors, it is necessary to have an exchange that is compliant and authorized by regulators. For the market to function, it is necessary to have a strong and fully compliant exchange ecosystem with a large number of investors to drive trading volume, making the ecosystem fluid. SThere are many reasons why security tokens are considered a disruption in the world of finance , but we can mainly summarize them as follows Rights Security tokens can provide investors with voting rights, legal certainty, rights to profits and dividends, and many other benefits associated with regulated securities offerings or investment contracts.