One of LCX’s primary goals is to tokenize everything. The STO launchpad is the platform that makes this easier by allowing for end-to-end tokenization. The platform brings the technology required for tokenization, together with legal compliance, to provide the ideal platform.
STO (Security Tokens Offerings) Launchpad partners with external companies to ensure faster transactions of the STO process and reduced costs. In this guide, we take an in-depth look at the platform and how it operates to help meet LCX’s goal of tokenizing everything.
What are STOs?
LCX seeks to bridge the gap between the traditional financial market and the upcoming digital one, with a sole focus on professional investors. Security Token Offerings are one of the ways of regulating investments in blockchain projects.
Blockchain projects use STOs to raise funds by tokenizing assets. STOs achieve this by creating a token that would meet the definition of a security. STOs have become quite popular, thanks to the advantages they present and the degree of legal compliance.
Liechtenstein’s Blockchain Laws
One of the most significant unique selling points for LCX is that it complies with the new Liechtenstein blockchain laws. Investors are more drawn towards projects that comply with the set guidelines and, therefore, LCX holds the promise of a sustainable project, thanks to this compliance and transparency.
Liechtenstein introduced the Blockchain Act to lay the legal foundation for a thriving token economy and compliant digital assets offerings. The Act defines a tokenized asset as a container that represents certain rights, be they legal, financial, or others, of the token holder. In so doing, the Blockchain Act brings together all the rights of the token holder and protects them under national legislation.
These laws define the services in the blockchain industry that are regulated, who need a license to operate, and what the terms of the licensing are.
What is the LCX STO Launchpad?
LCX is a financial services company that focuses on tokenization of assets, security token offerings and advanced trading tools. LCX STO Launchpad will be the new issuing platform for security tokens, while LCX Exchange aims to become the preferred marketplace for compliant digital assets. LCX is headquartered in Liechtenstein and is operating in accordance with the new Blockchain laws and regulations.
The LCX STO launchpad combines four primary elements. These are the LCX Proprietary Technology Platform, Legal Tool Kit, Account Management, and Token Framework.
- LCX Proprietary Technology Platform- This part of the launchpad deals entirely with the token generation and token issuing of the tokenized assets. This key element is the sale and distribution platform where investors will be able to purchase digital securities.
- LCX Legal Tool Kit- The legal tool kit helps to accelerate the whole process from idea to market launch. In collaboration with external partners the necessary legal documents, such as a securities prospectus, will be prepared. The legal tool kit not only helps to speed up the process, but also to increase efficiencies and cut costs.
- LCX Account Management- LCX’s proprietary technology platform includes advanced account management, such as Investor onboarding with sophisticated and automated KYC and AML checks and quick signup for all upcoming STOs.
- LCX Token Framework- At the core of the STO Launchpad is the token framework to manage the security tokens over the full lifecycle of the project. . The Token Framework also delivers a real-time captable and ensures compliance and enforcement of legal terms at both the platform and token levels.
Tokenization of Everything
The LCX STO Launchpad’s primary goal is to tokenize everything eventually. This entails creating a digital version of any physical, financial, or digital assets and handing over the legal and ownership rights to the token holder.
Although the concept of asset tokenization has been around for quite some time, the invention of blockchain technology helped to spiral the concept even further. STO Launchpad is taking things a step further by looking for a way to tokenize everything, with the hope of drawing in more professional investors into the blockchain world.
Thanks to the recent developments, it seems like blockchain technology is making leaps in various industries. It is, therefore, only a matter of time before the digitization of assets becomes a popular feature for investors. It holds endless possibilities, thanks to its having blockchain technology at its core.
Here are some of the advantages of asset tokenization.
Tokenization would make assets more accessible. For starters, investors would only need to meet the eligibility criteria of a token issuer to gain fractional ownership of an asset. Additionally, tokenized assets will be traded on an international network that operates in real-time. This ultimately allows many more investors to access security tokens.
STOs operate on a blockchain, which accounts for faster clearing and settlement as opposed to the traditional financial world. Investors get to transfer token ownership rights and clear settlements instantly, thanks to the shared distributed ledger. Faster transactions, in turn, make it easier for the investors to track the transactional history and discover token prices in the market.
One of the most significant challenges that face digital assets is governance and regulations. Security tokens help to dispel this challenge. STOs offer the same rights to token holders as traditional securities, creating some level of trust. These tokens would, therefore, appeal to first-time investors.
It is evident that as the world moves towards a digital space, asset tokenization will soon become popular. LCX, therefore, seems to have identified this gap much earlier and through the STO Launchpad catered to professional investors.
The STO Launchpad is looking to tokenize everything, and in so doing, provide investors with better and more lucrative reasons to invest in blockchain projects. With the backing of the Lichtenstein Blockchain laws, it seems that LCX has so much in store, and we can only wait and see what the innovative platform unveils next.