Turnkey security token development

Quality development. Ready-made infrastructure. Quick launch.

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Developing a security token for your business

A security token is a type of digital token that represents an ownership or investment in an underlying asset, such as a company, real estate or fund. Security tokens are issued and managed on a blockchain network, and cryptographic methods are used to ensure their authenticity and ownership.

Security tokens are designed to comply with securities laws, and they offer benefits such as increased liquidity, fractional ownership and compliance automation. Security tokens are also programmable, meaning smart contracts can be written on them that regulate their ownership, transferability and other characteristics.

Unlike utility tokens, which are used to access a specific product or service in the blockchain ecosystem, securitized tokens are an investment in an underlying asset and are subject to securities regulation. This means that securities tokens must be issued by companies that comply with securities laws and regulations and must be registered with the relevant regulatory authorities. Therefore, we provide full project support from development to marketing and legal activities.

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Necessary components for developing a Security Token

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.

Investment Strategy

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.

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Security token for business

Real Estate

Securities tokens can be used to represent ownership of real estate assets, allowing investors to invest in real estate without the high fees and complicated legal structures of traditional real estate investment vehicles. For example, the Harbor real estate platform launched a securities token offering for a luxury hotel in South Carolina, allowing investors to invest in fractional ownership of the property.

Venture Capital

Security tokens can be used to represent early-stage ownership of startups, allowing investors to invest in fast-growing companies with potentially high returns. For example, the blockchain-based venture capital firm Spice VC has launched a value token offering that allows investors to invest in a portfolio of blockchain startups.

Art

Securities tokens can be used to represent ownership of high-value art assets, allowing investors to invest in the art market without the high barriers to entry and illiquidity of traditional art investment vehicles. For example, blockchain-based art investment platform Maecenas has launched a securities token offering that allows investors to invest in fractional ownership of an Andy Warhol painting.

Commodities

Securities tokens can be used to represent ownership of commodities, such as gold or oil, allowing investors to invest in the commodities market without the physical cost of storing and transporting traditional commodity investing vehicles. For example, Swiss blockchain startup Tiberius has issued a security token backed by a basket of metals, including copper, aluminum and gold.

Private Equity

Security tokens can be used to represent ownership in private equity funds, allowing investors to invest in private companies and alternative assets without the high fees and minimum investment requirements of traditional private equity funds. For example, blockchain-based investment platform Neufund has launched a securities token offering that allows investors to invest in a private equity fund focused on the blockchain industry.
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The main advantages of security token

Securities regulation compliance

Securities tokens (securitized tokens) are issued in compliance with securities regulations, while utility tokens may not be considered securities and therefore not subject to the same regulations. Compliance with securities regulations can provide greater investor protection and transparency.

Legal ownership

Security tokens represent legal ownership or investment rights in an underlying asset, such as a company or fund, while utility tokens represent access to a product or service on the blockchain network. This could make security tokens more attractive to investors who want a stake in a real asset.

Liquidity Potential

Security tokens can be traded on regulated exchanges, which can provide greater liquidity and easier access to capital. Utility tokens, on the other hand, can only be traded on decentralised exchanges or used within a specific blockchain ecosystem.

Greater flexibility

Security tokens can have a wide range of functions, such as profit sharing, voting rights or dividend payments, making them more versatile than utility tokens. This can make security tokens more attractive to issuers who want to offer their investors different investment options.

Increased investor confidence

Security tokens can offer greater transparency and regulatory oversight, which can increase investor confidence in the token and the underlying asset. This can make security tokens a more attractive investment option for institutional investors and other investors who prioritize compliance and transparency.
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Full support of your business

We carry out a full cycle of security token development, followed by marketing and legal support.

Support and improvements

  • Improvement of the required functionality, UX / UI development
  • Support 24/7, according to SLA
  • Maintenance of servers and equipment
  • Information security assurance
  • Cold storage of tokens and cryptocurrencies

Legal assistance

  • Assistance in obtaining licenses
  • Assistance in opening accounts
  • Setting up bank cards and payment systems
  • Assistance in choosing a jurisdiction for the business
  • Organizing customer support service

Marketing and liquidity

  • Providing liquidity from top exchanges
  • Development and implementation of a user acquisition strategy
  • Drawing up a business plan to attract investment
  • Crypto business consulting

Consultation on the use of robots

We will tell you how you can automate your trading or simplify routine tasks
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Why Choose Us?

Deployment of full infrastructure for securitized token
Ability to test the product before purchase
Minimal implementation time with the proper level of quality
Guarantees that the product will meet the expectations of organization members
Easy and convenient scalability of the project in the future
Guarantees of transaction security and follow-up support
Free consultation
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Contacts