In front of you is our last article on asset tokenization – this time we looked through hundreds of STO platforms to find out which ones are the most prominent and versatile, so we picked 5 platforms and analyzed them so as to see what they are offering and how they are operating.
If you would like to read previous instances of our asset tokenization mini-series, you can read our previous article – 5 ways STOs are changing the world of finance. If you would like to read our take on security tokens and security token offerings, click here; also, if you would like to read about the principles behind security tokens, click here; and finally, if you’d like to see our take on asset tokenization principles, you can find that article by clicking here.
Now that we discussed the asset tokenization, security tokens, and the principles that stand behind issuing security tokens, we should then finally cover the STO platforms that support issuing security tokens that are compliant to the letter of the law.
Today, there are more than 500 STO platforms that you can choose from, depending on the goal that you have – the platforms vary from those that are strictly business-oriented and offer solutions for tokenizing loans, bonds, or investments, to more asset-only oriented STO platforms.
We picked 5 out of those platforms that you can follow if you are interested in asset tokenization. In order to better illustrate the current situation among STO platforms and to showcase what and how they function, below is our short recap of what these platforms do and support.
Swarm fund is a fully regulatory compliant STO platform that operates on blockchain technology and currently uses SRC-20 smart contracts but will support the upcoming ERC-1400 standardized tokens once they become adopted. The current SRC-20 smart contracts protocol is compliant with all legal constraints, such as allowing only accredited investors to invest in the assets, and all secondary trading is compliant with all current regulations as well. The great thing about the Swarm STO platform is that you can tokenize any asset – ranging from a piece of real estate to a part of a business.
Another characteristic of Swarm’s STO platform is its ease of use both to investors and to businesses offering their assets – it takes very little time to put up an asset to be tokenized, and the process is straightforward.
Although it is one of the newer STO platforms, Securitize has already amassed a following in the cryptocurrency community and they have become one of the most notable STO platforms due to its ability to support various other blockchains, most notable of which is Ethereum’s as well as Tezos’.
Securitize is also fully regulatory-compliant, so any security token that is found on this platform is fully up to standards that regulatory bodies expect, so secondary trading can take place too.
Securrency is another STO platform that has been around for quite some time now, and the team behind it has set out to create a Distributed Investment Banking Service system. However, they are not only dealing with issuing security tokens; Securrency has more systems beneath and it also serves as an exchange platform, as well as a security tokens trading platform as well.
This STO platform is also heavily regulated and is compliant with all laws, so both investors and businesses can use it as a means to raise capital and trade security tokens. The process of issuing security tokens is relatively simple and fast.
Neufund is an STO platform that was launched in 2016 with the idea to offer as many people as possible the ability to invest in and trade security tokens. This STO platform is lead by the idea that it is everyone’s right to be able to access investments and fundraisings, regardless of the background, location or capital.
Through Neufund, one can avoid huge costs that come with issuing securities by sending equity directly from one wallet to another. Moreover, the equity ownership is recorded on the Ethereum public blockchain and is protected by both the Ethereum blockchain as well as legal documents.
The last STO platform we chose to discuss more in-depth is PerfLogic, due to their ability to issue security tokens for almost anything that has future profits or return on investment for the investors who decide to back a project or a company.
Even though almost everyone can participate in both investing and creating security tokens, the platform is completely regulated and there are rules of conduct for every aspect of offering security tokens as well as trading them.
We hope you liked our mini-series on asset tokenization and the principles that stand behind it! Of course, the topic of asset tokenization, security tokens, and their trading, and STO platforms is much deeper and more elaborate than we were able to cover in this mini-series. We tried to present this new development we noticed unravel in the financial world, and we wanted to bring it to those interested in it. Bullbear Analytics follows these trends closely, so if you would like to learn more about it or to speak to our expert analysts, subscribe here.
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