Launching a security token offering platform has been profitable these days. Most of the startups have now profited with a good amount of benefits. So, before planning to launch STO’s. It is important to know the characteristics and features of the STO software for the business.
The mandatory features in an STO website script:
Compliant Token
Security tokens are developed with the security laws provided by the SEC. the security laws may vary from country to country. As per federal security law, no company can issue or sell the security tokens without the registration in the SEC. a token that qualifies the Howdy test is called security tokens.
STO regulations
The security tokens follow a certain set of federal security regulations.
USA Regulation for security tokens
- Regulation D
- Regulation S
- Regulation A+
Security Factors
The primary thing in any product is security. Two-factor Authentication is done to eliminate fraudulent activities. Therefore, whenever one needs to log in to the web interface, an authentication code will be sent to check for logging in.
Payment Gateway
Users should have the most convenient way of deposit and withdrawal. Therefore the STO script should have a responsive payment gateway to perform the transactions.
Automatic Token Transfer
By having the best STO script in the market, your tokens can be automatically transferred to users without any hurdles.
Bounty Programs
One of the easiest and best ways to promote the Security Tokens is through Bounty Programs. You can send a level based bounty for every token sale either in terms of tokens or amount with the STO script.
As a Crypto Enthusiast, I had a requirement of designing an STO website with an STO website script. I was looking for a solution provider who can fulfill my expectations on the website. Then, I came to know about ICOCLONE who provided the best in class solutions for STO software and security token offering services.
Their STO software featured the following factors:
- Delivered the secure and reliable STO software
- Risk Management in case of any issues.
- The multi-payment gateway that accepts Bitcoin and Ethereum
- Stunning Admin dashboard with feature-packed solutions
- Automated or manual token distribution on the admin’s dashboard
- Feature-packed User panel
- Referral and bounty program
- One can easily set up MLM programs to boost your STO sales.
Get a free live STO software demo for Admin and User panel.
While the blockchain technology offers a lot of advantages like immutability, transparency, and security, the fact that some of its applications were outside the purview of any regulatory framework was considered one of the most major limitations.These limitations manifested themselves in the form of scams that had marred the image of Initial Coin Offering (ICO).
The ICO, which was considered to be a revolution for raising funds for crypto projects, however, more than 80% scam-rate because of the lack of oversight.Establishing security… Literally!Tokenization, initially, was not designed to fit into any legal system.
These tokens entitle the possessor to partial ownership in the assets or voting rights or both.Security Token Offerings are expected to open the floodgates to the opportunities of investments.
This will help in enhancing the flexibility and access of your tokens without compromising on the security aspects.The United StatesBringing in the STO under the legal purview of a regulatory body like the Securities and Exchanges Commission (SEC) puts a lot of restrictions on the companies and the investors as well.
It is essential that every investor has to pass the KYC/AML (Know Your Customer/Anti-Money Laundering) requirements.Regulation 506(b) – this is a private placement exemption without general solicitation where a maximum of 35 non-accredited investors make purchase tokens.Regulation Crowdfunding – as the name implies, this regulation is an exemption for small offerings up to a maximum of 1.07 million dollars during a 12 month period with a limitation on the amount that an investor can invest.Limited offering under Rule 504 is for eligible companies where up to 5 million dollars can be raised over a 12 month period and the issue has to comply with the blue sky laws.Regulation A+ – this regulation has a possibility of two tiers being applied.
The first tier is for offering up to 20 million dollars in a 12 month period, and 2nd tier is for offering up to 50 million dollars in a 12 month period.
Our Sto development services are offered in various blockchain platforms like Ethereum, Stellar, and EOS.
The advantages comprise lightning-fast settlement of funds, easy transfer of ownership, unrestricted access to fractional ownership, reduction in operational costs, access to global investment programs, maintenance of a high level of transparency, adequate liquidity, and automated investor rights.
We develop different tokens like equity tokens (tokenization of company’s stocks), asset-backed tokens (both tangible and intangible assets), and debt tokens (with an obligation to pay back after a certain period).
The process we implement for Sto development is collecting your business requirements, outlining different use cases to design the application, choosing the right blockchain platform, determining the rules regarding the smart contract, defining the development roadmap which includes the application architecture, whitepaper preparation, STO website development, registering all the early investors, undertaking KYC verification, integrating the smart contract and the user interface into the platform, testing the application extensively, and going live when every aspect seems perfect.
We are a reliable security token offering development company enabling the full or partial automated transfer of ownership, attract minimal administrative costs by eliminating intermediaries and providing investors complete control over immovable assets with compliance to financial regulations.
The STO solutions developed by our blockchain team are highly secured, which augments legal fundraising activities.Oodles STO development company helps to crowdfund your business legally.
Our STO development services include asset token, equity token, and debt token development.
Let’s Connect If you have any similar requirements.
Security tokens might have their own Ethereum-based token standard called ERC-1400.
Polymath is working on tokenizing any kind of real-world asset that is offered only to accredited investors.
They automated the services needed for issuing a token and then trading it.ERC-1400 works as an umbrella that interoperates with several other token standards to manage fungible and non-fungible trading regulation.
They promise on-chain ownership but have not made the case why this is legally mandatory.
It is meant to help entities organize security token offerings (STOs) and better comply with regulations.According to the authors, who presented their security token standard via Github, the new resulting token should be compliant with both ERC-20 and ERC-777 standards.
Also, the token will have to ensure a complex connectivity environment between on-chain and off-chain actors.So what do you think of the continued development of the ERC-1400 security token standard suite?
