Whena token is subjected to federal security regulations and can derive its valuefrom an external, tradable asset, it is categorized as a security token.
Itis true that the process can seem complicated, but there are a lot of benefitswith a security token issuance. Tokenizing securities improves the liquidity ofunderlying assets which can engage more investors.
Securitytokens also come up with other benefits like increased market efficiency, lowerissuance fees and fractionalization of larger assets. If a startup meets therequired regulatory obligations, the security token offering can create a vastpotential for the variety of applications.
Two types of Security TokenExchange:
Thesetype of tokes are used for creating Initial Coin Offerings( ICO )for raising funds. These tokens does not equate to a share in thecompany, but can be used to facilitate a particular event, transaction or valuein the operations of the company. Eg: ETH is used to reward miners a fee forlending resources to exeute smart contracts.
(2)Security Tokens or Equity Tokens:
TheseTokens are also Crypto based, but it differs from normal Utility Tokens. Thesetokens are very similar to the shares you hold in the normal securities market.Each token constitutes a security or share of a company. These tokens will needto abide to all the compliance enforced by regulatory bodies like SEC etc. Itfollows the process and lifecycle of any normal stock ( Dividend, Local regulationsetc. )
ASecurity Token Exchange or an Equity Token Exchange is a special type ofexchange that hosts only Security Tokens. Any asset you purchase here is not anormal utility token, but a share of the issuing company.
Our Security Token Trading PlatformDevelopment Process
Wefollow a well defined process for our security exchange platform development.Before starting to develop any new feature in this STO Trading Script, wealways take the time to study the market's needs and requirements.
Afterwe understand the real business need, we'll go to the drawing board and designa ground-breaking User Experience that can be fitted into the product.
Withthe design in place, it's time for the heavy lifting platform development workdone by our skilled and enthusiastic software developers.
Testingcan take a very short or a very long time, depending on the complexity of thefeature and its importance in the business flow.
STO Exchange Developement Features:
Payment Gateway Integration
Themost important part of any cryptocurrency exchangeplatform, it allows the users buy and sell currencies through various modes ofpayment. With this integration, the ecosystem is completed and get afull-fledged form. Therefore, cutting edge technology is used for creating thisgateway and to make it much more useful.
Withintegrated wallets, transactions can be managed in a very secure and automatedmanner. The processing features make the usage of fiat currency very effectiveat every stage without having any impact on interfaces. This feature bring highlevel of efficiency and transparency which works for every user.
Frequenttransaction between buyers and buyers can be lost, it can further be a causefor a big dispute. For avoiding this situation an escrow system is introducedwhich keeps track of all the transactions happened between the two parties.With our technology, we ensure that the processing time of recording is kept atminimum.
All Currency Transactions
Thisis indeed a great feature which lets the users integrate any currency theywant. Using the security token exchange software, it is made possible for theusers to involve Bitcoin, Ethereum, Litecoin or any other fiat currency. Themechanism ensures all the currencies can co-exist and their identity is sortedfor no complications.
Security Exchange Platform
Theinclusion of BAF Security Exchange Platform makes the whole the process veryeasy for your token holder by allowing to create their own security tokenexchange. It ensures that they are connected to the main network and theliquidity is also in place. It aims at reducing the gap between the users andbusiness owners.
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