What is an STO?STO stands for Security Token Offering
What is a Security Token Offering?
A security token represents an investment contract into an underlying asset; a real-world asset such as a company or property. So while a security token is recorded on the blockchain, like crypto coins and ICO’s, it also resembles a traditional initial public offering (IPO). It’s like a hybrid solution melting the best of both worlds thereby creating novel opportunities.
- STO’s are asset-backed and offer an investment contract under securities law, unlike ICO’s.
- STO’s are regulated offerings like IPOs but because of tokenisation, speed and cost-effectiveness its applications are not limited to large companies.
Via Liqwith’s STO service any small or medium-sized enterprise (SME), start-up, or scale-up can tokenize its shares in a cryptocurrency and bring it to the public market. This service is not limited to companies enabling creative solutions to distributed ownership of forests, real estate, fine art, sports teams, classic cars and much more. Time to get inspired and to use your imagination!
The democratization of ownership
A Security Token Offering is about sharing ownership and the benefits of ownership. It facilitates the participation of stakeholders, big and small, and does so fast, cost-efficiënt and secure. Key is the STAK (Dutch voting trust foundation), which is a very specific system, unique to the Netherlands, set up to administrate and issue certificates to share holders.
By selling the Security Tokens one can raise capital in the market from private investors in a security token offering (STO). The organization will raise the desired liquidity and will only have to pay out dividends when the investments are paying off. Just as in the regular stock market a company is obliged to report properly and timely on its progress and results. Via an STO up to EUR 5 million can be raised under Dutch law every 12 months.
Is an STO the way forward for your organization?
- Enter your name and contact information.
- Answer 40 questions about your organization.
- Download your free personalized STO Readiness Report.
- Discover exactly when and how an STO is of value to you.
Get in touch
Want to get in touch? We'd love to hear from you. Here's how you can reach us...
EINDHOVEN OFFICE, High Tech Campus 32, 5656 AE Eindhoven, Room 3.304
+31 165 33 22 44