Security Token Offerings

Available on area2invest.

Invest in the assets of the future today.

Security Token Offerings (STO) are the future – this is now widely accepted in the market. The advantages of digital securitisation and issuance of tokenised securities are great – both for the sell and buy side, and therefore there is much to suggest that the trend of Security Token Offerings will come to fruition.

 

Several studies show the huge potential of the tokenisation market. We have compared five independent studies (Valuates Report, Data Bridge Report, The Insight Partners, Markets&Markets and HSBC) and have taken the average of the different forecasts, which results in an estimated CAGR of 56.9% from 2020 to 2025 for the Security Token Market with a potential to reach 3’000 billion USD until 2025.

What is a Security Token Offering?

A Security Token Offering – often also abbreviated as STO – describes a way to tokenise tradable financial assets (like shares in a company or real estate) and offer them to the public in a responsible regulated process.

Benefits of Security Token Offerings

Broader Investor Base

When it comes to real-world assets, fractionalisation is only possible to a limited extent. The blockchain makes it possible to buy or sell token that represent fractions of ownership. This allows a broader investor base to participate in a purchase.

Faster Settlements

Tokenisation has the potential to drastically reduce transaction times due to 24/7 availability. Smart Contracts can be automated to complete transactions instantaneously and significantly reduce settlement times.

Security benefits due to regulation

Regulators are currently developing regulatory tokenisation frameworks in financial markets. These frameworks are intended to improve the level of protection and transparency for investors.

Increased Liquidity

By making fractional ownership possible, tokenisation allows investors to acquire shares of assets that are not liquid per se. If an artwork, real estate or an old-timer is tokenised, it can be purchased by a large number of investors.

Register free-of-charge in the area2invest portal and get access to a variety of STOs.

White Paper Series

STO 101: Anatomy & Context of Security Token Offerings 

Featured STOs

Finka Token

 

The Finka Security Token launched in Switzerland is based on a revenue sharing model, which enables the distribution of revenues through blockchain technology. The innovative security combines technology and the forward sale of future revenues in the traditional cattle industry, which the Swiss company operates through its own subsidiaries. The token is based on a cattle herd in La Pradera, Bolivia. Token holders have the right to visit La Pradera and experience cattle breeding first hand, without direct local costs. Private, professional and institutional investors from Switzerland can invest in the Finka Token.

Vogemann Green Ship Token

 

The Green Ship Token is a digital security in the form of tokenised, qualified subordinated profit participation rights. The subscribed capital is used for the acquisition of newly built or maximum ten year old low-emission Handysize Bulkers. The currently favourable purchase price situation speaks for an entry at exactly this point in time. The offer has been calculated with an interest rate of 8 percent p.a. on the capital invested with a maximum term of 15 years. In addition, a variable profit participation is envisaged, the amount of which depends on the economic success of the issuer.

You have further questions about STOs? Contact us now