Follow us on or join ours

Security Tokens they allow new investors to enter the cryptographic market safely and legally. They are fully integrated with the applicable regulations, thanks to which they can be successfully used in the process of digitizing individual resources.

To be able to find a place in this digital world, it seems necessary to understand the functioning of existing types tokens, including STO. Individual assets require different legal solutions.

The four main types of Security Tokens

Equity STO

The first of them constitute Equity STOwhose capital is the ownership right of individual assets. They can represent the owner of physical assets, such as, for example, share in real estate. They are also very good for digital resources, which means that it is currently the most common type of STO.

Bond STO

They are the second type Bond STO, providing security for bonds, while ensuring a constant income in the period indicated in advance.

Real Estate Asset STO

The third type are Real Estate Asset STO, which in turn are divided into two subtypes. The first one represents real estate property, it is worth emphasizing that the digitization of real estate provides investors with greater liquidity of transactions and effective use of technology blockchain. The leading company in this type of services is the platform Harbor. The second type of Real Estate Asset STO are debt-type assets, for which digitization is paid for a given property. Thanks to this, the process of collecting and rotating the proceeds from rent is fully automated.

Commodity Asset STO

And finally they are the fourth type Commodity Asset STOrelating to raw materials. Tokens represent in this case such goods as, for example, gold, silver or oil. Digitization of turnover with such a group of goods enables a larger number of investors to participate in the market.

It is also worth mentioning that US Securities and Exchange Commission (SEC) in recent times, more practical measures are being taken to increase security. A stronger emphasis on security issues has resulted in companies implementing cryptographic projects taking greater account of the SEC guidelines.

STOs have enormous potential to revolutionize business operations on a global scale. Security tokens based on block chain technology enable investors to enter the digital asset market securely, but this area still seems to be under-explored.