Token Offerings are posing challenge to the status quo:
Advances in DLT technology triggered the origination of a nascent industry of Security Token Offerings (or STOs), which provides businesses with a new range of opportunities and unprecedented efficiencies. Essentially, Security Tokens are converted rights to an asset or to an economic benefit in the form of a programmable token powered by self-executing smart contract on a blockchain.
Security Token Offerings are fully regulatory compliant and include debt, equity, asset or derivative tokens. They are the next evolutionary step following the ICO phenomenon. In 2018 Token Offerings, including STOs, accounted for 11%+ of the global IPO market and are effectively posing a challenge to the current status quo in the financial services industry.
World Economic Forum predicts that 10% of global gross domestic product (GDP) will be stored on blockchain technology by 2027. Trillions of dollars of assets and securities are expected to transition to distributed ledgers in the next 5-10 years.
While DLT offers many advantages over traditional financial services industry and capital markets, what are the benefits to your businesses? Here is what you need to know.
Token Offerings' Share
of Global IPO Market today
of Global GDP will be
stored on blockchain by 2027
State of the industry
“The Most Innovative Projects Will Involve The Tokenization Of Assets. This has nothing to do with cryptocurrencies or tokens used as a payment instrument on blockchain. Representing digital or physical assets as tokens on a DLT-based network allows participants to reinvent processes and develop new business models. This is uncharted territory from both a business and technology perspective.”
— Forrester Research:
“Predictions 2019: Distributed Ledger Technology”. November 7, 2018.
Private or Public
Smart Sherpas STO platform provides businesses with a cheaper, faster and easier way to digitize their assets and raise capital: debt or equity. The use of smart contract automation and DLT technology enables an unprecedented level of efficiency when companies offer tokenized fractional ownership rights to the investors via Public Sale or Private Placement to the accredited investors.
Businesses looking to initiate a Security Token Offering on our platform will gain access to the database of retail, accredited and institutional investors around the world, who passed verification of their investor status to ensure compliance of the offering in many jurisdictions, including: the United States, Canada, United Kingdom, 28 countries in the European Union, Hong Kong, Singapore and others.
By definition all Security Tokens are regulatory compliant and subject to the existing legal securitization frameworks as mandated by the regulator in the applicable jurisdiction: i.e. by SEC, FCA, ESMA, FINMA, etc.
Smart Sherpas has developed SS-20 Token Standard and compliance protocol. It is leveraging smart contracts for the automation of compliance procedures on the STO platform. The database with business rules ensures adherence to the applicable security regulations while keeping transactions seamless during all stages of Security Token lifecycle starting with the issuance on the day of the initial token offering through to transactions on the secondary market.
Click below to learn more about compliance procedures on ‘STO Sherpas’ platform.
Our Advisory Services
Smart Sherpas Advisory was founded by the graduates from one of the worlds top-ranking executive business programs. Our ‘Sherpas” are all seasoned executives with an average of 15 years of experience. They will navigate you through all of the preparatory stages for a Security Token Offering across the following four areas of expertise:
- Strategy Review and Financials Validation
- Blockchain and Smart Contract Development
- Legal & Regulatory (e.g. Reg CF, D, S, and A+ support)
- STO Marketing & Solicitation
Industries & Solutions
The following sectors and types of the Alternative Assets class are expected to reap the greatest benefits from asset digitization:
- Sports Industry & Football Talent
- Land & Real Estate
- Fine Art, Luxury Goods & Collectibles
- Commodities: e.g. Liquified Gas, Solar energy
- Crowdfunding, such as STO or ICO
- Private Equity
- Corporate Debt
- Syndicated Loans
Ready to start a conversation with our team of advisors or want to schedule a demo of the platform? Send us a quick message and we’ll reach out to you to set up a meeting.
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