Do you know where to go?

The STO Guidance Service

by The Tokenizer

Our service helps you plan and execute an efficient and compliant security token offering.

What is an STO?

A Security Token Offering is the process and event of issuing and offering security tokens representing fractions of an underlying asset – like equity tokens representing company shares.

STOs are:

Relevant for SMEs and even some startups that need to raise capital.

It’s less time-consuming and costly than a traditional IPO – at least in theory.

Security tokens can be traded 24/7 and, in principle, globally.

The underlying technology of blockchain and smart contracts allows for easier compliance and traction of all transactions.

Customised guidance

In theory, STOs are significantly more accessible, faster, and inexpensive than traditional IPOs.

However, in practice conducting an STO is a rather complex process that calls for assistance by experts to safely lead the asset owners through all the steps of preparation and execution of the STO.

This is where The STO Guidance Service comes into the picture. The process of planning and conducting an STO spans over several months and contains many sub-elements.

Our goal is to make it as easy for you as possible.

Get started

The STO Guidance Service provides customised guidelines and a complete roadmap of all the steps of an STO.

Our service will accommodate your needs no matter what kind of asset you want to tokenize, in which jurisdiction, or how much capital you want to raise from which segments of investors.

Because STOs are offering securities, being in compliance with laws and regulation must be a top priority for all STOs.

We will help get you started in a compliant manner.

To get started, please subscribe below. The STO Management Tool will save you money and time and ensure that you consider all compliance aspects when conducting your STO.

“Tokenization of global illiquid assets estimated to be a $16 Trillion business opportunity by 2030

[…] Tokenization potential of $68 trillion by 2030 in best-case scenario.”

Boston Consulting Group

Why tokenize companies?

In principle, any asset can be tokenized – equity, debt, collectibles, music, art, real estate and all kinds of real-world assets

One asset class with a massive potential is private, non-listed companies. But why would you chose to tokenizer your company?

First, tokenization is a proces of representing assets in the form of pieces of computer codes called tokens. In principle, all kinds of assets can be tokenized.

Tokenizing a company typically means representing the rights of the shares of the company in the form of regulated security tokens.

These security tokens are controlled by so-called smart contracts, recorded on a blockchain, and tradeable via exchanges or peer to peer between investors.

What are the advantages?

Tokenization increases the liquidity of shares in unlisted companies.

Tokenizing your company enables you to raise new capital through a Security Token Offering – or STO. This is a fully regulated, but much more accessible alternative to an IPO.

Tokens representing company shares can be traded 24/7 and potentially worldwide.

Smart contracts ensures compliance, and the blockchain keep track of all transactions and makes it easy to update your captable.

Why tokenize funds?

Investment funds such as:

Venture Capital Funds
Private Equity Funds
Commodity Funds
Real Estate Investment Trusts (REITs)
Funds of Funds
Exchange-Traded Funds (ETFs)
Hedge funds

are all possible candidates for tokenization.

Tokenizing funds is already possible today, and to a large extent, this resembles the process of any other security token offering.

According to the latest accessible numbers, there are 14,089 Private Equity funds, Hedge Funds & Investment Vehicles businesses in the US alone as of 2023, which is an increase of 2.4% from 2022.

What are the advantages?

Increased liquidity

Tokenization increases liquidity because shares in the tokenized fund are represented by regulated security tokens (which are pieces of computer codes on a blockchain managed by smart contracts) that can be traded 24/7 on any security token exchange in the world – or even peer-to-peer between digital wallets.

Broader range of investors

Investing in traditional funds is typically reserved for ver wealthy investors due to large investment tickets. Tokenization allows for easy fractionalisation of asset units and ticket sizes, enabling a much broader range of investors.

Easier management/administration

The use of smart contracts on a blockchain enables transparent real-time traction of all transitions and an always updated cap table. Costly constant reconciliation between involved parties is no longer needed because all transactions are recorded and distributed on a blockchain.

Automated compliance

KYC and AML checks can be coded into the smart contracts removing the need for manually checking whenever a transaction is made. Also, smart contracts can ensure that only compliant investors can participate in the investment fund.