Acting as an intermediary of sorts, BlockRules launches and manages its clients’ tokenization. And asset tokenization marries demand with supply in a new, innovative format.īut the problem is, how do you go about connecting that demand with supply? That’s where BlockRules comes into play. Companies want capital and investors want a piece of viable companies, usually in the form of equity.
While the concept of STO platforms may seem incredibly alien to those unfamiliar with the blockchain, it’s actually very simple. Here are five STO platforms that are making huge digital waves. As well, blockchain tokens can be traded in secondary markets, making them far more flexible than traditional private investing platforms. Primarily, security token offerings open access to private investing, a previously exclusive club. Essentially, this is the blockchain’s version of stocks, and STO platforms are the exchanges that host these stocks.īecause of its myriad conveniences, STO platforms could revolutionize the businesses that raise capital. Here, the tokens (coins) are digital representations of real assets, such as corporate equity or real estate. To rectify this dilemma, the blockchain industry created a concept called security token offerings. That created huge problems, number one being that the coins had no fundamental value.
And the idea of the initial coin offering (ICO) was that the coins themselves would rise in value. Rather than raising funds through equity offerings, entities could instead offer coins. As the foundation of the blockchain architecture, these coins feature utility within the ecosystem.įrom a business standpoint, early variations of asset tokenization – or the issuing of blockchain-based tokens – had tremendous value. Typically, a transaction in a particular blockchain involves the exchange of coins or tokens, which are often tied to a reward for executing certain actions. To understand security token offerings and the broader concept of asset tokenization, we must take a step back and recognize the blockchain economy. It’s the same principle that drives security token offerings and the burgeoning industry of STO platforms. Underlining their enormous enthusiasm is the concept of decentralization, or in practical terms, providing laymen access to previously exclusive financial markets.
Even for those that are not big on the blockchain, they’ve undoubtedly heard of bitcoin, ethereum, and other popular cryptocurrencies.
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