The year 2017 was inescapably the year of the Initial Coin Offerings (ICOs). After the tables are turned due to some scams, however, came at the beginning of the year, the next wave, with the Initial Exchange Offerings (inner-earth objects). The President of the Singapore FinTech Association, Chia Hock Lai, now sees the Security Token Offerings (STO) as the next major technology Trend in the next three years. Your Thesis of you are justified by the high demand for the securitisation of assets of all kinds, which can now “be with the advent of” the Blockchain technology is realized.Security Token Offerings (in short: STO) so the next big thing are? What is behind the concept of STO, and what makes this so ‘special’? What is the role of Singapore in this context?
Contents
Security Token Offerings (STO) – a Definition
We first briefly to the Definition of, or idea behind a Security Token Offering. To this end, we remind ourselves briefly of the wedding of the Initial Coin Offerings (ICOs) in 2017, numerous companies sold in the framework of ICOs their own tokens (mostly Utility tokens).Many private investors have invested in such projects, because there was a ‘Hype’ or investors with high promises ‘baited’ were. Now, however, that ICOs were at that time free of regulation, so that with the purchase of a Token in the context of the ICOs no legal claims have been asserted.
Security Token = regulated and token centralized asset
To put it differently: a person Who acquires the financial market is a stock receives a fundamental value. Because with the purchase of a share, the rights and obligations of a company are evidenced, and the buyer of the shares is a shareholder/shareholders of the underlying company. Those who invest in a ICO and tokens in the framework of which receives, has no legal claims. He is neither a partner of the company nor does he has the right to a say, or Similar.We come now back to the topic of STO. The great and decisive difference between STO and ICO is in the regulation and the value of the claim. Security tokens are nothing more than assets-/assets in token of localized Basis. You (=the Security Token) must comply with the applicable regulations on securities. So that means that there is a need for a regulatory approval for the issuance of STO. An example: Is a company a stock, it must first create a securities prospectus by the nature and subject-matter of the security is defined in greater detail. The same is true for the STOs.You have to read everything and want to still not miss anything? Then sign up now for our weekly Newsletter and be always Up-to-date. Get easy access to all relevant News about Bitcoin & Crypto, Blockchain, Meetups, and news within our Community by E-Mail – summarized and clear. Subscribe to the Newsletter now.
Singapore and Security Token Offerings (STO)
A member of the Singapore Fintech Association describes a (likely) first one-off case. Because according to the President of the Fintech Association, the aim was to popularize the cows in Myanmar “token” and emit as the value of paper in digital Form. To do this, the company is RFID used Tags to different data of the cows (date of birth, health condition, etc.) to the Blockchain record. With the help of this method, it should be investors can now invest in Tokens, or cows to ’secure base‘.
Before the advent of Blockchain technology such assets could not be securitized easily.
The case is admittedly very special. Nevertheless, he shows the variety of application possibilities. On one of the Fintech Association event organised Chia also said that there are plans in the future also other things such as agricultural areas to the authorized token.
Singapore, with pioneering role in the area of FinTech, and STO
In relation to the Position of Singapore as a Fintech leader Chia refers to the active character of the city-state. To do this, for example, the recent investments in the local stock exchange in the private securities exchange 1X. This has recently completed Singapore’s first securitised Token offer (STO). As further examples of calls iSTOX, one of the ICHX developed a block chain based platform for the capital market. About the future of Singapore, Chia power, therefore no Worries:
It is expected that Singapore is at the forefront of the digital Commerce space, as it has the advantage of being a global financial centre, and its rules are clear.
Security Token Offerings (STO) as the next big thing? How would you rate the role and relevance of STO? Come in to our Telegram Chat and talk with the experts and the Community. Subscribe to our News channel to not miss any News. (Image Source: Shutterstock)