Tokenization is trending positively these days, so much so that both Boston Consulting Group and Citi have projected the market cap of tokenized assets to reach trillions by 2030. Marrying regulatory compliance with the best of blockchain, security token offerings (STOs) have the power to go the distance in this field. Forward-thinking entrepreneurs looking to leverage STOs to raise capital must choose the best asset tokenization platform in order to maximize their choice of success.
Below are 5 questions that you can ask yourself before approaching an asset tokenization platform for help with your security token offering.
Does the asset tokenization platform offer capital-raise solutions?
Ensure that the platform you choose provides a comprehensive suite of tools and services that support your capital-raising process, such as investor onboarding, regulatory compliance, and customizable smart contracts. At INX, we offer an end-to-end solution for primary offerings, complete with KYC verification, a dedicated web page for your raise, legal and marketing support, cap table management, dividend distribution and more.
Does the asset tokenization platform offer a secondary market for trading?
One of the main challenges facing tokenized securities is the issue of secondary markets where the assets can trade once they have been issued. In order to offer security token trading, an exchange must be both licensed as an alternative trading service (ATS) and seamlessly integrated with the blockchain technology that makes tokenization possible. On INX.One, investors trade security tokens 24/7 with full self-custody and transparency afforded by the blockchain, all while enjoying the peace of mind that goes along with trading on a licensed platform.
Does the asset tokenization platform have the necessary licensing?
The platform should have the appropriate licenses and registrations in the jurisdictions where you plan to operate, ensuring that your STO adheres to all applicable regulations and is not at risk of legal issues. In addition to the aforementioned ATS license, INX also holds both a broker-dealer and a transfer agent license that allow us to facilitate both primary raises and secondary markets for security token offerings.
Does the asset tokenization platform have a pedigree in tokenization?
A proven track record in the tokenization space is key when choosing a partner. Make sure your chosen asset tokenization platform can showcase successful projects and a strong understanding of the technical and regulatory complexities involved in launching an STO. As the issuer of the first SEC-registered security token in history, INX has been there, and done that, right from the very beginning. Now we can help you!
Does the asset tokenization platform allow investors to invest with both crypto and fiat?
To maximize the potential investor base for your STO, choose a platform that supports investments in both cryptocurrencies and traditional fiat currencies, offering flexibility and convenience to a diverse range of investors. INX.One is the only place where security tokens trade seamlessly alongside cryptos like Bitcoin and Ethereum, giving investors an opportunity to invest using US dollars or crypto.
The Next Frontier For Capital Markets
There’s little doubt that we are witnessing one of the most significant paradigm shifts in history. On the one hand, traditional finance is embracing the digital world, with a particular focus on blockchain technology. On the other hand, regulatory headwinds are pushing crypto companies in the direction of security tokens. Such was the INX vision from day one, and such is the vision we are proud to execute for our clients.
If you’re interested in tokenizing with us, visit our raise page to get in touch.