Blockchain App Factory Starts Developing Security Token Offering (STO)

Blockchain App Factory Starts Developing Security Token Offering (STO)

Blockchain App Factory, a platform focused on creating highly functional solutions for blockchain startups, has announced the launch of its STO services.
The firm has now added Security Token and White-label Exchange development services to its existing offerings.
The highly innovative firm has over 25 clients in the distributed ledger technology world, including Li & Fung supply chain management company that handles more than 9 million deliveries daily, via its automated supply chain platform.

Blockchain and STO’s

While ICOs are great fundraising methods for startups, bad actors have however taken advantage of the seemingly unregulated nature of these crypto-based fundraisers to wreak havoc.
STO firmly believes that there is a need for institutional investors to enter the Security Token Offering ecosystem to stabilize it.
James Harper, Director of Sales and Business Development, reiterated that:

“The present state of ICO is riddled with roadblocks because many companies lack the clarity of ICO’s purpose and the Blockchain space. And so there is a hesitancy among the institutional investors to invest in ICO, solely because of the non-regulatory compliance, lack of financial transparency and the volatile nature of the market.”

Security tokens make the digitization of illiquid assets possible and allow investors to reap huge returns.
Security tokens are believed to possess better legal clarity as compared to its counterpart.
It also pays attention to investor protection by enforcing stringent regulations.
These tokens also come with their limitations, the major one being the lack of platforms to seamlessly develop these tokens and lack of credible exchanges to trade them.
The security tokens must work in accordance with the relevant laws including KYC, AML, and others.

A Paradigm Shift

Highly reputed equity investment firms back the firm and almost launched its IPO earlier on before deciding to follow the blockchain route.
This firm has adopted the STO model and has a reliable platform creating security tokens and an exchange on the white-label blockchain that offers zero fee trading.
James Harper, Director of Sales and Business Development, said that:

“many traditional companies will delist from traditional stock exchanges to move into blockchain due to high barriers to entry and the exorbitant cost for regulatory compliance. Traditional methods of raising capital like Venture Capital, Bonds, Stocks will be tokenized. We expect real estate especially the commercial real estate will be the first movers into the STO market.”

Blockchain App Factory is here to securitize digital assets and build a trillion dollars industry shortly.
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