Security token standard
A security token standard is a set of rules and specifications that define how security tokens are created, managed and traded. It is important to choose a standard that is widely accepted and compatible with existing blockchain networks, such as ERC-1404, ST-20 or R-Token.
Legal and Regulatory Compliance
Securities tokens fall under securities regulation, so it is important to work with lawyers to ensure compliance with applicable laws and regulations.
Underlying Asset (Liquidity)
A security token represents an ownership or investment in an underlying asset, such as a company, real estate or fund. This asset must be identified and structured so that it can be represented by a security token.
A platform for issuing tokens
A platform is needed to issue and manage a security token. Such a platform could be a blockchain network, such as Ethereum or Polymath, that supports the issuance and management of security tokens.
Smart contract development
Smart contracts are the code that governs the behavior of a security token, including its issuance, transferability and compliance. Smart contracts need to be developed and tested to make sure they work as intended and meet regulatory requirements.
Token Economics (Tokenomics)
Token economics refers to the economic model and incentives associated with a security token. This includes factors such as the overall supply of tokens, their distribution, and the commissions associated with their issuance and trading.
Issuing security tokens involves interaction with investors, so it's important to have an investor relations and communication plan. This includes ensuring transparency of the underlying asset and token performance, as well as compliance with reporting requirements to investors.