STOs offer automation and efficiency for both issuers and investors allowing for greater trust and transparency in transactions.
Assets issued, held, and transferred on a blockchain will eliminate the time requirements on: legal counsel, compliance and investor communications.
Issuer costs are further reduced without the need for annual token holder meetings.
With STOs there is no longer a need for transfer agents to record transactions, cancel and issue certificates, process Investor mailings and deal with lost or stolen certificates. Likewise, administrative costs of shareholder conflicts and other issues will be eliminated as all records will now be indisputable on the Blockchain.
Private Placement Liquidity can be enabled due to access to various secondary market trading opportunities.
STOs also enable Private Placements and other Alternative Investments to be customized in their structures.
The online marketing campaigns of STOs will attract broader Investor interests; investors can now take on the role of brand ambassadors for the issuers.
STOs allow for easier fractionalisation of assets and the respective revenues they generate.
With a STO, companies can allow for investment through tokenization, which significantly cuts admin and legal costs while keeping the company and the process transparent.
Any compliance costs that would typically be required for an IPO or other securities trading can further be reduced by embedding trading restrictions into a token via smart contracts.
Alongside the ability to trade at any time of day, any day of the week, STOs allow for companies to raise capital on a truly global level. Similar to online fundraisers, people from around the world can invest in projects they feel personally inspired by, regardless of their location. This further impacts liquidity and the legitimacy of a company by growing an organic following of supporters of a product at an early stage.
Regulatory clarity for faster adoption.
Liquidity means that the investor is flexible to make changes in his portfolio: decide when to exit, to trade or to hold his assets in parts.
We start with the perspective that the goal is not simply to apply best practice but to invent it.
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