Security tokens represent a innovative approach for owning real assets like traditional stocks and bonds. Security tokens provide numerous benefits to token holders through enhanced security compared to initial coin offerings. Unlike ICOs, which became very popular in recent years, security tokens add protection for investors. By offering ownership of real-world assets through blockchain records, security tokens unlock new opportunities in global capital markets. Investors gain transparency and liquidity previously absent from traditional structures. This emerging technology has the potential to reshape industry by upgrading outdated systems. It introduces greater access for investors through increased transparency and higher liquidity. Security tokens are innovating finance by combining real asset participation with blockchain advantages.
Security tokens can unlock assets liquidity within minutes, as opposed to traditional stocks, where the settlement may require a minimum of 2-3 business days.
If, for instance, an investor purchases shares on Friday, they will receive the stocks or bonds on Tuesday at the earliest.
Security tokens completely eliminate the waiting period, providing instant access to the investments made.
Such trading process is extremely convenient for the real-estate market, where closing deals can potentially take months, even in the case where there is a buyer on the line, prepared to make an immediate purchase.
Another great advantage of security tokens is their availability on the global market. Anyone who is looking to buy and sell security tokens can do that from any point in the world, as long as they are connected to the Internet. The crypto market allows trading of STO tokens 24/7, without waiting for stock exchanges to open.
Security tokens, unlike ICO tokens and other crypto products, are supervised by regulatory bodies and laws. Law compliance immensely contributes to the enhanced security that STO tokens provide against fraudulent behavior.
Security token offerings – the new IPO
Security token offerings are an excellent and efficient way for investors to obtain shares of a company. Raising capital on the crypto market allows a convenient option for all firms looking to exploit the crypto space. STOs provide a fast, secure and transparent way for fund collection.
Based in Zug, the platform is fully compliant with all Swiss laws related to financial intermediaries, banking, anti-money laundering, and organized trading facilities. Among its core values, there are innovative solutions through blockchain technology, which ensures security and liquidity.
EDSX is the first platform in Europe with primary and secondary markets for both institutional and retails. EDSX is a pioneering platform that employs the world’s leading technology to globally list security tokens in both primary and secondary markets, listing digital securities of real financial instruments to the public with a decentralized peer-to-peer exchange. Our goal is to fully engage every aspect of the financial revolution.
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