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Blockchain Experts

Security Token Development

Security Token development is a new rage in the cryptocurrency industry. Fulfilling the requirements of the Howey test, the tokens derive their value from a tradeable external asset. It complies with all the federal security laws. The investors’ trust to put their money in various projects is improved. Security tokens are Crypto tokens that pass the Howey Test. These tokens usually derive value from a tradable external asset.

Security tokens are subject to federal securities and regulations and hence deemed as Securitized tokens. Security Token Offering is built to increase the investors' trust to invest in various projects. We are the market leaders in Blockchain Technology. Our adept team has extensive experience in developing cryptocurrency, be it utility or security tokens that have helped numerous organisations achieve their goals. Based upon the distributed ledger technology, Blockchain App Factory has built cutting-edge state-of-the-art security token issuance platform.

Security tokens empower investors with financial rights such as,

Dividends

Profit Sharing Rights

Equity

Buy-Back Rights

Our Suite of Security Token Development Services

As a well-known provider of security token development services, we offer well-defined services to our clients, leading them to desired success as a business in the crypto space.

Security Token Offering Development:

Leverage our security token offering development team to create tokens that aid in elevating your business’s presence in the market.

STO Platform Development:

Build a featureful exchange for security tokens with our STO platform development experts to unveil possibilities to trade STO tokens.

STO Marketing:

Promote security token projects to the world with our STO marketing professionals using a plethora of strategies on multiple mediums.

Tokenized Asset Offering Development:

Create tokens backed by RWAs for fundraising purposes with our tokenized asset offering development team to lay your venture’s foundation.

Security Token Development Services

Security Token Offerings - A New Era in Digital Asset Investment

Security token offering was created to bring the institutional investors on board the cryptocurrency and blockchain era. Through the trustless network, blockchain will automate the legal and auditing requirements with the integration of smart contracts. Security tokens are financial securities that are sec compliant. These tokens provide the investors with an array of financial rights that are written in smart contracts and the underlying tokens that are traded on the blockchain.

At the blockchain app factory, we don't just build, but we pioneer in security token platform development. The tokens can be developed on your own blockchain that offers zero gas prices, enables faster transactions with no congestion of networks, and more. That's not all, the blockchain app factory has access to a network of investors, who would fund your project through security token offering (STOs).

Elements Making Our STO Development Services Remarkable

The ethereum blockchain with erc-20 does not suffice the requirements of the securities backed tokens. The major issues include gas prices, congestion in the networks and protocol issues. To overcome the issues, blockchain app factory develops customized scalable blockchain and smart contracts to fit the requirements either on ethereum or hyperledger or stellar.

Token Distribution

Distribute crypto tokens backed by real-world securities, which can enhance trust in your project among prospective investors and help you attain fundraising goals.

Fractional OwnershipProvide fractional ownership tokens representing securities like equities and project shares, which can entice investors to pour in funds when they trust your vision.

Token TransferabilityAllow investors to transfer tokens to others within your STO portal, which can generate ample gains for you without the need to list tokens on external exchanges.

Dividend and Interest PaymentDistribute dividends and interest periodically to investors, which ensures they hold onto your crypto tokens for longer periods of time, strengthening your community.

Features of Our Security Token Offering Development Products

With our security token offering development products, you can expect a wide range of features that make them efficient and appealing to the wider community. Thanks to our advanced products, you can conduct a seamless STO campaign without hassles.

  • Automated Regulatory Compliance

  • Zero Intermediary Involvement

  • Programmable Asset Equity

  • Highly Secure Wallet

  • Customized Smart Contracts

  • Rise in Token Liquidity

  • Global Investment Opportunities

  • Heightened Market Efficiency

  • Legally Compliant Tokens

  • Transparency

Our Clients

Types of STO(Security Token Offering) Development

Equity Token

Equity Token

An STO where each token is backed by the stock in your company so that the holders of your token have equal rights to your actual stockholders in terms of votings and dividend issuance.

Reserve Assets Token

Reserve Assets Token

Companies which trade in real-world commodities like Gold, Real Estate etc., can launch an STO through us where the tokens are backed by your reserve of the said assets.
Debt Token

Debt Token

If your company would rather not tokenize your stock or reserve assets, you can raise funds by issuing Security Tokens with the promise of payback to attract debt investors.


Steps for STO Development

01

Finding the securities which the issuance company to tokenize such as commercial estate. We at the blockchain app factory carry out our due diligence for tokenization.

02

Our auditing, financial and legal consultants forming the core of our security token advisory team will advise on the jurisdiction checks with regards to the securities titles such as credit ratings and any other parameters specified by the owner.

03

A Special Purpose Vehicle or Entity(SPV/SPE) is formed especially when tokenizing securities for only the purpose of trading security tokens.

04

The technology behind the Tokenized Securities is the strength of the Blockchain App Factory. We believe ERC-20 is not an ideal solution for STO due to the gas prices, congestion of networks and changes in protocols. Blockchain App Factory will build customized blockchains with inbuilt smart contracts on top of the Ethereum or in Hyperledger or Stellar.

05

The valuation of these securities are scrutinized by an auditing firm , post-which a value per token is suggested and the issuance company such as yours can issue a token at that price.

06

Once the token is developed with regulations embedded into the smart contract, a dashboard will be provided for investor management for the issuer and fund management for the investors. The dashboards include KYC/AML, Accredited Investor verification and voting rights in-built for investors and project owners.

07

The tokens are offered through a Security Token Offering (STO) for investors to purchase a legally compliant token under the framework of the legal requirements. As the smart contract ensures the automation of regulatory requirements, there are no requirements of third party intermediaries such as transfer agents.

08

Once the STO is completed, the tokens are to be listed on the Security Token Exchanges for investors to trade on the secondary market. These can also be traded through Over The Counter(OTC) where the accredited investors can trade directly with the token holders.

Security Token Issuance Platform

A customized end-to-end security token issuance platform for issuers & their specific target industry. Issuance companies can tokenize their Equity or Fund or any other securities such as bonds, debts etc. As an issuance company, you can provide Tokenization as a Service & the tokens generated has the following features:

Automated Compliance with Blockchain & Smart Contracts.

Multi-Ledger Security Token Development(EOS, Hyperledger or Stellar)

Non-Fungible Tokens for every Security Token Issuer

Tokens issued have an interoperability layer for exchanges across the world

Automated Policy and Regulations with Smart Contracts

Automated reporting to Regulatory Authorities

Globalized KYC/AML Verification

Investor Management Dashboards
Investor Management Dashboards
  • The dashboard provided by us is an all in one platform for you to manage the KYC/AML records, Accredited Investors, Market Cap, Fund Raising and Investments.

  • You can engage with your investors through proactive disclosures and mail them for openings in further rounds of investments.

  • You can see audit trails, checklists, activities, standard reporting process in a secure way.

  • Investors can manage their portfolio in an effective way.

  • All the announcements(voting, holdings, new offerings etc) can be transmitted through the dashboard.

  • All the transactions of the security tokens can be categorized through the Capable Management

Investor Management Dashboards
Investor Management Dashboards
  • The dashboard provides transparency to the Securities Token Ecosystem.

  • Bylaws, Shareholder agreements, SAFT etc. are kept in one safe location allowing consistent view across platforms.

  • Tracking shareholder management with an ability to download and confirm messages, voting items and track responses.

  • Issuance companies can distribute and the investors can track the dividends.

  • Investors can also vote through the dashboard.

Security Token Packages

Legally Compliant Token Architecture $20,000 $50,000 $90,000
Technology
Custom Ethereum Token
Own Blockchain -
Hyperledger Burrow
Integrated Voting Rights Platform
Token Wallet as per Regulatory Protocol
Investor Managment Dashboard
Automated KYC/AML Integration
Automated Accredited Investor Verification
Stake Holder Registry
Integrated Dividend Issuance Platform
KYC/AML records Registry
Accredited Investors Registry
Market Capitalization Details
Funds Raised & Investment Details
Integrated Help Desk on Dashboard
Audit Reports & Checklists
Portfolio Management for Investors
Announcements within Dashboard
Uploading Legal Documents & Disclaimers
Investor Prospectus
Whitepaper (Owner's Manual)
Customized Website
Preliminary Checks
Development of Documents
Customized Website
Token Purchase Agreement
Development of the Token’s Legal Structure
Disclaimers for the website and marketing materials
Token Crowdsale Terms
Private Placement Agreement with Private Investors
Legal Opinion on the Sale of Tokens
SAFT Agreement
Token Purchase Agreement
Company Valuation Audit
Establishment of the holding company in Malta -
Establishment of the holding company in USA
Establishment of the Maltese trading company -
Establishment of the USA trading company
Registration of the Operation Company
Legal Agreements between Holding and Main Operational Company
Local Directors if Required
Registered Office
Tax Compliance
Application of Licenses
Liaise with MFSA & MDIA for Compliance -
Liaise with SEC for Compliance
Accounting & Book Keeping
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Benefits of Using Our Security Token Offering Development Services

As a client using our security token offering development services, you can experience an array of benefits that will carry your business in the long term. Not only that, your users will gain numerous game-changing advantages that will eventually elevate your venture.

    Automated Equity Dividends
   Share in Profits
   Seamless Cash Flow
   Governance Rights
   Buyback Capabilities
   Holdings in Other Funds

We Offer STO Token Development for These Asset Classes


Our expertise in STO token development lets you create security tokens for assets of various classes. Tokens representing different real-world assets from us can quickly lead you to immeasurable success.

Real Estate Create STO tokens for real estate properties to enhance accessibility to the most-wanted asset class for the wider world.

ArtTokenize art through STO development to brighten market prospects for creators and collectors, opening up new opportunities.

Exclusive ProductsConvert unique and vintage products into STO tokens to increase their value and generate much-needed revenue and market hype.

Illiquid AssetsLiquidate illiquid assets through security crypto tokens to present new and valuable investment opportunities for investors.

Mining RepositoryDevelop STO for precious assets like gold, minerals, and renewable energy to open futuristic trading choices to investors.

Venture Capital FundsForm tokens representing VC funds to create easier and widespread funding opportunities for aspiring entrepreneurs worldwide.

Blockchains We Offer Excellent STO Token Development


At Blockchain App Factory, we specialize in offering top-tier Security Token Offering (STO) development services across a variety of leading blockchain platforms. Whether you’re looking to tokenize assets, raise capital, or launch a secure and compliant token offering, our expert team has the experience and technical know-how to deliver customized solutions on the blockchain that best suits your needs.

Technology Stack We Utilize in Our Security Token Creation


At Blockchain App Factory, we leverage a robust and cutting-edge technology stack to ensure the seamless development and deployment of security tokens. Our comprehensive approach integrates the best tools, platforms, and frameworks to deliver secure, scalable, and compliant Security Token Offerings (STOs). Below is a breakdown of the key components in our technology stack:

  • Bitcoin Network

  • Script

  • JavaScript

  • Python

  • Java

  • Golang

  • MongoDB

  • IPFS

  • PostgreSQL

  • Pinata

  • UniSat

  • Ordinalswallet

  • Truffle Suite

  • RemixIDE

  • OpenZeppelin

  • React

  • Web3.js

  • Redux

  • Node.js

  • Django

Voting Rights

A proprietary voting platform built on blockchain enhances security, transparency and scalability which is stored on a distributed ledger. An ecosystem of governance is created for your companies security token structure to meet your needs. This reduces the overhead in the voting process and makes the governance of your organization easier and increase trust among your investors.

  • The voting rights platform ensures a peer to peer, trustless secret ballot immune to intermediary attack and exposes vote manipulation if any.
  • Through a off-chain layer, we ensure the scalability of the platform which can handle millions of votes per minute.
  • Transparency is inherent to blockchain and the stakeholder can verify every vote in the system through fully auditable codes.
  • There is no single point of weakness in the system with minimal risk of being compromised due to the decentralized nature of the system.

KYC/AML Automation

In the regulated STO, the basic requirements are KYC/AML verification reduces the risk through reputation scoring which helps issuance companies identify high-risk individuals . This helps you prove your investor's identity,risk-based authentication and preventing identity fraud. In addition, you can also reduce money laundering activities.

KYC/AML automation help in efficient onboarding of the investors in a quicker time frame.. In addition, you can stay ahead of the regulations through a flexible interface where you can respond to new developments with ease.

Why Choose Blockchain App Factory As Your STO Development Company?

Blockchain App Factory’s combination of expertise, comprehensive services, regulatory focus, and client-centered approach makes them an ideal choice for businesses looking to launch a successful STO. Choosing Blockchain App Factory as your STO (Security Token Offering) development company can be a strategic decision for several compelling reasons:

  • Comprehensive Expertise

    Blockchain App Factory has a deep understanding of blockchain technology, tokenization, and securities law, ensuring that your STO is compliant with regulatory requirements. Their team comprises seasoned professionals who are well-versed in the nuances of STO development, from concept to launch.

  • End-to-End STO Services

    The company offers a full suite of services, covering every aspect of STO development. This includes token creation, smart contract development, legal compliance, KYC/AML integration, marketing, and post-launch support. Their end-to-end solutions ensure a seamless and successful STO launch.

  • Regulatory Compliance

    Navigating the regulatory landscape is critical for STOs. Blockchain App Factory places a strong emphasis on compliance, ensuring that your STO adheres to relevant securities laws and regulations in multiple jurisdictions. This minimizes the risk of legal complications and enhances investor confidence.

  • Customizable Solutions

    Blockchain App Factory offers customizable STO solutions tailored to your specific needs and business objectives. Whether you’re a startup or an established enterprise, they can develop a solution that aligns with your goals, providing flexibility and scalability.

  • Proven Track Record

    With a successful track record of launching various STOs across industries, Blockchain App Factory has established itself as a reliable partner in the blockchain space. Their experience and expertise have helped numerous clients achieve their fundraising goals through STOs.

  • Advanced Security Measures

    Security is paramount in any blockchain-based project, and Blockchain App Factory prioritizes it by employing robust security protocols, including secure smart contract coding, multi-layer encryption, and regular audits. This ensures that your STO is safe from potential threats and vulnerabilities.

  • Client-Centric Approach

    The company takes a client-centric approach, offering personalized support and services. They work closely with you throughout the development process, ensuring that your vision is realized and that the final product meets your expectations.

  • Continuous Innovation

    Blockchain App Factory stays ahead of the curve by continuously innovating and adopting the latest technologies and trends in the blockchain space. This forward-thinking approach ensures that your STO solution is cutting-edge and competitive in the market.

  • Post-Launch Support

    After the STO launch, Blockchain App Factory provides ongoing support and maintenance to ensure the continued success of your token. This includes updates, troubleshooting, and assistance with secondary market trading.


Frequently Asked Questions (FAQs)

An STO (Security Token Offering) is a type of fundraising mechanism in which investors receive tokens representing ownership or entitlements, such as equity, dividends, or profit shares, in a company or project. These tokens are considered securities and are subject to regulatory oversight.
Unlike ICOs (Initial Coin Offerings), which typically offer utility tokens with no inherent value or legal rights, STOs offer security tokens that are backed by real assets, profits, or revenue. STOs are regulated and must comply with securities laws, making them a more secure and legally compliant investment option.
- Regulatory Compliance: STOs are legally compliant with securities regulations.
- Access to Global Investors: STOs can attract investors from around the world.
- Enhanced Credibility: Being regulated, STOs often enjoy greater trust and credibility among investors.
- Liquidity: Security tokens can be traded on secondary markets, offering liquidity to investors.
- Fractional Ownership: STOs allow for the fractionalization of assets, enabling more investors to participate.
1. Conceptualization: Define the project, asset, and type of security token to be offered.
2. Regulatory Compliance: Ensure compliance with relevant securities laws and regulations.
3. Token Creation: Develop and issue security tokens on a blockchain platform.
4. Smart Contract Development: Create smart contracts to govern the token’s functionality.
5. KYC/AML Integration: Implement Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures.
6. Marketing and Promotion: Promote the STO to attract potential investors.
7. Token Distribution: Distribute tokens to investors post-purchase.
8. Post-Launch Support: Provide ongoing support and facilitate secondary market trading.
Popular blockchain platforms for STOs include:
- Ethereum: Offers robust smart contract capabilities and is widely adopted.
- Stellar: Known for fast and low-cost transactions.
- Tezos: Provides on-chain governance and self-amending capabilities.
- Polymath: Specifically designed for security tokens and regulatory compliance.
- EOS: Offers high throughput and scalability.
STOs must comply with securities regulations in the jurisdictions where they are offered. This includes registering the offering with relevant regulatory bodies, ensuring investor protections, adhering to KYC/AML requirements, and providing full disclosure to investors.
Compliance is achieved by working with legal experts who specialize in securities law and blockchain technology. It’s crucial to adhere to the regulations of the countries where the STO will be marketed and ensure that all legal documentation, such as the prospectus or whitepaper, is accurate and complete.
The costs of launching an STO can vary widely depending on factors like the complexity of the project, legal fees, token development, marketing, and platform fees. It typically includes expenses for legal compliance, smart contract development, platform fees, and marketing.
The timeline for launching an STO can range from a few months to a year, depending on the complexity of the project, regulatory requirements, and the readiness of the development team. The legal and compliance process often takes the most time.
KYC (Know Your Customer) and AML (Anti-Money Laundering) processes are essential for ensuring that the STO complies with regulatory requirements. They involve verifying the identities of investors to prevent fraud, money laundering, and other illegal activities.
Yes, security tokens can be traded on regulated security token exchanges or Alternative Trading Systems (ATS). These platforms provide liquidity to investors by allowing them to buy and sell security tokens in secondary markets.
Almost any asset class can be tokenized through an STO, including:
- Equity: Shares in a company.
- Real Estate: Ownership stakes in real estate properties.
- Debt: Bonds or other debt instruments.
- Commodities: Physical assets like gold or oil.
- Revenue Sharing: Rights to future revenue or profits from a business.
Attracting investors to an STO involves a combination of legal compliance, transparent communication, and effective marketing. This includes creating a compelling value proposition, offering clear and transparent documentation, leveraging social media, and engaging with potential investors through roadshows, webinars, and other channels.
Post-launch support includes maintaining investor relations, ensuring ongoing compliance with regulatory requirements, facilitating secondary market trading, providing regular updates to investors, and addressing any technical issues that may arise with the tokens or platform.
While STOs offer greater regulatory oversight, they still carry risks, such as:
- Regulatory Risks: Changes in regulations can affect the STO.
- Market Risks: The value of security tokens can fluctuate based on market conditions.
- Technical Risks: Issues with the blockchain platform or smart contracts can impact the STO.
- Liquidity Risks: Depending on the secondary market, liquidity for security tokens may be limited.
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