The most comprehensive yet concise overview of the ecosystem in security tokens is out now, compiled by Blockshow. Mustread to anyone interested in STOs and tokenization.
Firstly, the report places security tokens into a historical perspective, the rise and fall of ICOs, following the application of the Howey Test by the US Security and Exchange Commission. Afterwards, the authors shift to stablecoins and emerging context for the security tokens.
“Security tokens have the potential to bring the classic fiat and crypto economies much closer together”, states the report. It is pretty clear to anyone in tokenization, but the authors of the report by Blockshow come up with a much more interesting finding:
We believe the security tokens ecosystem has reached a critical level. The combination of developments in infrastructure platforms; first-mover examples of companies that raise funding by issuing security tokens; and the emergence of new, trustworthy stablecoins finally enables a much deeper intersection of the off-chain and crypto economies. Thus, new projects to be built on top of them.
The report defines in detail what security tokens are: an excellent, very detailed explanation provided by Blockshow. Even clearer is the description of the current applications for security tokens:
First, they allow corporations to issue their stock in the form of security tokens that are recorded on the blockchain. These tokens represent a security and the corporation either has to either file an S-1 form in the U.S. or rely on an exemption (e.g. Reg A, Reg D) that would likely limit their marketing audience. For instance, Reg D prohibits general solicitation and allows only accredited investors to participate.
Secondly, security tokens can represent an off-chain financial asset or security. The companies and financial institutions can use it to tokenize their assets, such as debts, real-estate funds and mutual funds, marketable commoditized goods, etc.
Perhaps the most useful part of the report by Blockshow named The Infrastructure Layer. It is a brief yet a detailed list of all major issuance and compliance platforms, from Polymath to Atomic Capital. Read it, and you will quickly match your needs to an existing platform.
STO Projects is the next major item underr review by the analysts of Blockchain. Basically, they break all STOs into the three following categories:
– Securitized Investment Entity
– Real Estate Investment
– Tokenized Equity or an Equity-like Profit Sharing
The report go onto descriptions of all major projects, such as Blockchain Capital, Lottery.com, Slice Real Estate, Moonligting, SPiCE, Property, Swiss Real Coin.
In conclusion, the report talks of stablecoins im further detail.