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Tokenization of Securities: A New Way to Raise Funds for Your Venture

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Tokenization of Securities: A New Way to Raise Funds for Your Venture | Tokenization of Securities: A New Way to Raise Funds for Your Venture

Raising funds for a new venture is extremely intimidating and exhausting. As an entrepreneur, you need to spend a lot of energy and time in pitching potential investors while taking time to grow your business as well. Raising funds for a business can be very challenging; it definitely never gets easier to raise funds on your own.

However, with the introduction of tokenization of securities (STO) or release of utility tokens (ICO or IEO) raising funds can be made a lot easier. The utilzity tokens can definitely change the way businessmen and entrepreneurs raise funds. Fortunately, with the rise in security token offering agency, one can expect a new fundraising process for different ventures from internationally accredited investors. The entire process allows the investors to increase the access to deals, and allow companies to market their business more conveniently and effectively, without a mediator.

Security Token Offerings (STOs)

Security Token Offerings or tokenization of security is a fundraising method that allows companies to find capital to help their business grow and at the same time allow accredited investors internationally to find potential investors. The security token offerings broaden the scope of the market while also increasing the liquidity. STO is one of the most effective and practical ways to find and match the sellers of the security token that are offered by a company with the potential buyers who are willing to purchase the tokens.

Security Token: The Most Transparent and Legally Protected Way to Raise Funds

Security Tokens are the digital assets that are regulated by federal security. The security token is mostly used by startups for the purpose of fundraising through the token sale. The idea is to invest in a company and get a token rather than a share or a certificate. STOs simply make the investment and running of a startup company easier, convenient and more profitable. The Security Token Offering is cryptographic tokenization of the capital in order to provide investors with a digital share of a company. While Security tokens are defined as financial security in accordance with federal security regulations in simple words, they can be defined as digital assets along with traditional financial products. The Security Tokens have definitely changed the outlook of financial products as it does not include the involvement of a third party or a middleman. No involvement of a third party results in lower fee charges, quicker deals, complete access to the global market, greater access to the potential investors, automated services, and no financial manipulation.

How Tokenization has Revolutionize Fundraising?

Security Token has completely revolutionized the traditional financial products by removing the involvement of a third party for the transactions. As a result, it offers an amazing way to raise funds for ventures through STO. Let’s see why?

  • Reduces the fees
    The fees that is related to transactions is obtained from payments that are owed to the third party. However, in case of security token, the need to pay the third party or middleman is excluded. Since there is no middleman involved in the transaction the fees are lowered and the transaction is also way faster. Furthermore, with the introduction of smart contracts, the tokenization will be made more convenient and easier.
  • Execution of deals in real time
    When there are a number of people involved in a deal it takes more time for execution. Since there are no middlemen involved in the transaction and investment, the time taken for investments is fairly low. Furthermore, spontaneous trade settlements for tokenization will definitely lure more investors and issuers.
  • Complete access to the market
    One of the main problems that the issuers face today is incomplete access to the global market. The investment transactions simply do not have complete access to the global market which is the biggest drawback for the issuers as well as the investors. For instance, for an investor in Europe, it is difficult to invest in the Asian market and companies and vice versa. However, by using security tokens the asset owners can very easily market their deals to anyone across the globe. All you need is an internet connection and you have got access to the global market.
  • A greater base for investments
    The issuers can present deals to anyone around the world who has a connection to the internet, this indeed increases the potential of the investors. Of course, you would want to project your deals to accredited investors across the world rather than accredited investors in just one or two countries. The possibilities are endless in a global market.
  • Better Liquidity
    Tokenization definitely offers better liquidity for the investors. There are multiple exchanges which increase the potential of the investments and trading of the tokens. Thanks! to the usage of blockchain more and more people are investing in tokens. There are more potential buyers as well as sellers of the tokens, hence increased liquidity in the mark

Priority Token: A Perfect Platform to Legally Raise Funds

Priority Token is an international ICO/STO/IEO agency. It helps you with consultation, promotion, and fundraising. Through the expert links and experience, the agency will help your venture grow and flourish on a global level. The company offers STOs and other services listed below:

Positioning and targeting: Through analysis and understanding of the competitors the agency helps to strategically position your project or venture in the global market.

Direct fundraising and roadshows: Priority Token helps you find potential global accredited investors who are interested in your venture. Through an extensive global network of private and institutional investors, they also help in arranging one-to-one meetings and pitching.

A broad spectrum agency: At Priority Token you can find services that provide services offerings for Security Token Offerings, post-ICO/STO secondary trading and IEO.

Bottom line: Tokenization definitely offers great benefits for the investors and issuers on a global level. The entire process of tokenization is designed to provide the investors and issuers a bigger and better picture in the market. It offers better liquidity for the investors and also improves the overall potential gains.

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