Security tokens or tokenized securities have offered an ingenious way for investors to enter the cryptocurrency world. Unlike utility tokens, they bridge the gap between blockchain networks and legally financial assets. Backed by the Securities and Exchange Commission (SEC) rules and regulations, they have gained significant traction among financial institutions, investors, and service providers.
If you are planning for security token exchange development, you may likely get experience success. It is because security tokens’ global acceptance and adoption have increased the need for compliant security token exchange development
So, let’s start by assessing the potential of security tokens to solidify your decision of security token exchange development.
In simple terms, security tokens are backed by tangible assets like a company’s shares, assets, profits, real-estate, etc. Security tokens act like digital assets that supplement crowdfunding and blockchain projects while being compliant with securities regulations.
One can smoothly trade private securities on a secondary market by tokenizing them. It makes them free from the administrator requirements of traditional securities. Security tokens involve no intermediaries and provide enhanced inclusivity, quick deal execution, and more
Security tokens provide the following benefits
Make illiquid assets liquid: Make small, private non-liquid securities accessible to everyone
Bring transparency and 24/7 access: Blockchain-powered transparency and trust make a global market always operational and accessible 24/7, thereby enabling faster and cheaper trades.
Programmability: Security tokens are programmable. One can make security tokens to automate corporate governance, proxy voting, and dividends.
Besides these, security tokens benefit in the following five ways
Programmable ownership and compliance
Ownership of tokenized assets
Security Token Exchange Development with Oodles
There are multifarious factors that need to be taken into consideration for security token exchange development, like security, performance, user experience, and SEC compliance.
At Oodles, our blockchain team toil to assist you with accomplishing your business objectives. We develop security token exchanges while making them compliant with the SEC regulations required for an Alternative Trading System. We also provide a range of cryptocurrency exchange development services.