What are the advantages of STOs?

Easier and Faster Procedure

STOs tap into the power provided by blockchain technology, which automates processes and essentially removes intermediaries. While the specific processes vary in every jurisdiction, they are more straightforward, faster, and less exhaustive compared to IPOs.

More Cost-Effective With Quicker Turnaround Time

Being on the blockchain means that smart contracts govern almost everything around an STO, including regulatory compliance, which enables more effective sales and exits by eliminating intermediary fees.

Smart contracts can also automate all token-related transactions, which makes turnaround times for STOs faster and cheaper compared to traditional IPOs.

Wider Jurisdiction and Access

STOs are not restricted to a certain area as long as investors have an account with the exchange/platform that the STO is listed on and comply with the said exchange/platform’s legal and identification requirements such as KYC.

When it comes to accessibility, security tokens also have the advantage of being accessible 24/7 the whole year around. Their issuance, reporting, settlement, clearance, underwriting, exchange, registry, and compliance do not involve human intervention and they can be acquired or disposed of around the clock.