Anatomy & Context of Security Token Offerings

Like no other technology before it, the blockchain has drastically changed the financial industry and will continue to do so. While the largest applications of this technology – cryptocurrencies – have already gone mainstream, other use cases, such as Security Token, are only on the verge of a breakthrough.

Nevertheless, the “Tokenization of Everything” is advancing in leaps and bounds. One would be right to say that the advantages for issuers and investors clearly outweigh the disadvantages. Tokenization, i.e. the packaging of assets into digital units, and the associated fractionalization of these assets offer unimagined possibilities. Whereas it used to be almost impossible to share paintings, vintage cars, real estate or licensing, usage and participation rights and make them investable and tradable for a large number of people, this can now be done very well and comprehensibly based on blockchain technology.

This huge potential is reflected on the one hand in the market forecasts for the transaction volume for Security Token, and on the other hand in the large number and variety of enquiries that we receive every day. We have noticed that there is a gap between the market potential and the actual client enquiries, which we want to close with our whitepaper series “Security Token Offerings: Anatomy and Context”.