Security Token Offering (Steps to Development)

  • In the near future, most commodities, bonds, stocks, and other financial assets will be subjected to tokenization. Security token platforms, issuance platforms, and alternative trading systems (ATS) are beginning to emerge on a frequent basis. The following are the process steps involved in developing a security token offering:

    -> Identify a securities management and legal consulting firm
    -> Decide on the blockchain network of choice
    -> Engage a token factory/issuance platform
    -> Money agent, transfer agent, and broker-dealer
    -> Open up token offering
    -> Market your STO
    -> Exchange listing strategy

    Not every STO will be using the exact same process, but this is a general outline of it. STOs have a lot more yellow tape and increased up-front expenses when contrasted with an ICO. This is a critical consideration to keep in mind. At this point in time, the SEC is very cautious in approving any Reg A token offerings.

    Reg Ds do not require to be explicitly approved by the SEC, it is recommended that STOs take legal precautions when preparing filings and beginning to take in the capital.