By
Temitope Olatunji
March 11th, 2024
Blockchain App Factory has recently announced the company’s intention to launch security token offering (STO) development services.
Enterprise blockchain technology solution and services provider, Blockchain App Factory, has announced the launch of its security token and white-label exchange development services. The team of professionals leverages its own blockchain technology solutions to innovate applications formed in various industries.
Blockchain App Factory already boasts over 25 clients within blockchain and crypto, including Li & Fung, a 118-year-old global supply chain management with almost nine million deliveries per day, which are executed via an automated supply chain solution.
Blockchain technology is always associated with token generation events (TGEs), during which millions of dollars are being raised daily. But despite all the great promises, only a few firms can boast real financial backing while raising funds via TGEs. It is becoming increasingly difficult for investors to establish trust and invest in any cryptocurrency project.
According to James Harper, Director of Sales & Business Development in Blockchain App Factory:
“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.”
This where Security Token Offering (STO) enters the game. Security Tokens or digitized assets represent themselves financial securities that are totally compliant with SEC regulations. They provide the investors with an array of financial rights, such as equity, dividends, profit share rights, buy-back rights, and much more. All the rights are written in the smart contract, and the underlying tokens are traded on the blockchain.
Financial regulators, such as the U.S. Securities and Exchange Commission (SEC), is determined to protect investors from frauds, pump and dump schemes, and exit scams. Blockchain App Factory’s team of 200 experts are going to expand their offerings into STOs and use their own centralized exchange.
Being totally compliant with the stringent regulations and limitations required by security offerings, Security Tokens are designed to digitalize such assets as real estate, equities, and security bonds, which are known to have better legal clarity compared to their counterparts.
The main issue which is currently faced by Security Tokens is that they are hardly available on digital platforms yet, as well as are difficult to manage. On top of that, very few trusted exchanges use security tokens.
Blockchain App Factory has already successfully completed more than 30 ICOs. One company, which is backed by one of the largest equity investment firms, almost did an IPO in Singapore, but instead decided to fundraise with security tokens through Blockchain App Factory. The company has seen a rise in the success rate since using Blockchain App Factory’s secure and reliable platform, which is designed to create the perfect environment for its clientele.
James Harper commented:
“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.”
The Security Token Development team understands the need for the illiquid assets, such as real estate, to be converted into tokenized assets to raise funds for the projects. Security Token Offerings can become another multy-million market, as we can currently observe a great necessity for trusted and effective method of fundraising.
Blockchain App Factory’s innovation-driven platform will compile the creative ideas of avant-garde blockchain concepts and convert them into real-world business solutions.