Security Token Offerings (STO's) are an upcoming market that is an interesting use-case for blockchain. Security Tokens are tokenized real-world assets such as real-estate, bonds and equity, etc. Tokenizing assets has several advantages over classical asset management. Most important improvements are:
- The positive impulse for the liquidity of these assets. Tokenized assets will be available for accredited traders 24/7 globally. Transfer of ownership can be done in a matter of seconds without the need for intermediaries.
- Transparency due to the fact that all rules will be registered on the smart contract, showing full compliance with regulations. On top of that, all transfers are registered on the blockchain and thus immutably stored.
One of the companies specializing in the technical side needed to issue STO's is Vertalo. In the end of January this year, Transfer Agent Vertalo announced that they made Tezos their default blockchain for STO issuance. “The company has chosen Tezos because its smart contract abilities are available in multiple programming languages, Hendricks said. He also cited Tezos’ rate of transactions per second, stable network of participants and the collateralization opportunities offered by being a proof-of-stake network.”
Today, they announced to issue 22 STO's with a total value of $200 mill on the Tezos blockchain in cooperation with Dealbox. The clients that provide the 22 STO's all are brought in by DealBox. DealBox has issued two STO's on the Stellar blockchain, but is now exploring a migration of these assets to the Tezos blockchain.
About DealBox:
"Headquartered in San Diego, DealBox Inc., together with parent company Capital Services Group combine unparalleled capital markets leadership with world-class analysts, technologists and legal experts to deliver a novel and powerful approach to venture capital fundraising and private equity investment.
Deal Box Inc. is a FinTech Merchant Bank and capital markets consulting firm that specializes in the securitization and productization of assets for emerging growth companies such as royalty distributions, revenue share agreements, equity and voting rights using the revolutionary technologies of the digital securities industry. The Deal Box Team is comprised of capital markets veterans, expert technologists, design experts, and creative visionaries."
More news on Tezos and STO's:
The first asset was tokenized on Tezos in March by Equisafe.
