Global Capital Access

The traditional capital market is extremely restrictive. For example, a South African investor finds it challenging to invest in a small Canadian company and vice versa. With security tokens, however, cross country transactions become a lot easier.

SEC Compliance

Security tokens fall under various SEC regulations D, S, and A+. Under these regulations, you get access to accredited and non-accredited investors from the US and abroad. You also have to comply with KYC and AML norms, lending legitimacy to your security tokens.

Higher Liquidity

Free access to global investors results in more liquidity. Investors across countries can easily buy, sell, and trade security tokens through licensed security token exchange platforms.

Quicker Execution

Blockchain-based security tokens operate in a peer-to-peer fashion, leaving no need for a middleman or a centralized exchange. You won’t need a third party to verify investors or transactions. The use of smart contracts results in faster, secure and more economical transactions.

Improved Regulation and Credibility

Unlike utility tokens, security tokens fall under federal regulations. The accountability factor lends more credibility to security tokens, especially from the investor’s point of view.

Fractional Ownership

Security tokens allow every investor to have fractional ownership of an underlying asset. You can divide assets into smaller units available for sale. Thus, investing in security tokens becomes a lot easier for small investors.

Transparency

Each blockchain transaction is secure, verifiable, and reliable, making it more transparent compared to traditional transactions. This can reduce the chances of fraud, manipulation, and money laundering.

This is a small section from our extensive market report on security token Offering (STO). If you would like to get complete hold over the nuances of this market with the present and future predictions, the key players, and how to build your own security token exchange, click here for the full research report.