security tokens

a unique opportunity for companies and investors

A security token represents a tangible asset that a company has to offer to their investors. Companies that perform a Security Token Offering (STO) offer investors a share or the right to a profit share in their business. Security tokens provide the investors with real and transferable rights to their investment and that makes it a safe and reliable investment tool.
A security token also gives growing companies a secure and profitable way to raise capital.
Autradety makes the whole process affordable, simple and professional for both investors and companies. We invite you to use our platforms built on cutting-edge technologies and our diverse pool of marketing, legal, financial, media and technical experts.
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Features security tokens

Regulated
STOs are subject to securities trading regulations. Investors are protected.

Compared to traditional securities, security tokens are issued on the blockchain.
INTERNATIONAL
Security tokens provide companies with access to global capital.

Investors receive a unique international investment opportunity.
Affordable
Smart contracts on the blockchain make intermediaries superfluous.

Both companies and investors have no expensive costs for intermediaries.
Transparent
The traditional securities market is not transparent. Everything goes through intermediary parties.

These intermediaries are not necessary for STOs.
FRAUD RESISTANT
The property rights of investors are stored on the blockchain through smart contracts.

These cannot be changed retroactively.
Fractional

Security tokens support fractional ownership.

An investor can own a fraction of a security token, which increases accessibility.
LESS VOLATILE
A security token have an underlying value, such as shares, real estate or commodities.

This leads to less speculation and therefore less volatility.
INNOVATIVE

STOs exist through innovations such as smart contracts and blockchain.

They attract innovation investors and initiate new developments, such as apps for the STO market.
MULTIFUNCTIONAL
Security tokens are multifunctional.

Investors can buy shares with a security token, but can also purchase a product or service with the same token.
LIQUID

STOs make illiquid assets such as real estate easier to trade.

They increase supply and demand. More trade means more liquidity.
QUICK
A security token can be traded quickly.

Where traditional effects only change ownership on fixed days and times, security tokens are sold 24/7.
Accurate
The issuance of security tokens and associated legal compliance are fully automated.

This ensures accurate and reliable data.

INTERESTING FOR YOUR COMPANY?

Explore the possibilities of a
security token for your enterprise.

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From IPO to STO

To understand how security tokens were created, we travel back in time.

1602 VOC
The first initial public offering (IPO) takes place. The VOC issues shares to finance its overseas trading activities. VOC chambers throughout the country serve as trading houses. The very first dividend is not paid in cash, but in kind from the goods shipped.
1817 New York Stock Exchange
Opening of the first traditional stock exchange where shares are traded.
1825 London Stock Exchange
The second traditional stock exchange opens its doors. While only US equities are traded on the NYSE, the London Stock Exchange focuses on European companies.
2013 Ripple
Ripple Labs starts with the development of a payment system. The company creates 100 billion XRP tokens. To finance the development of the Ripple platform, the company sells around two-thirds of the tokens through the very first initial coin offering (ICO).
2014 Ethereum
The Ethereum Foundation raises around USD 20 million with an ICO. The Ethereum network makes it possible to implement smart contracts and thus functions as an ICO platform for other projects.
2017 ICO-boom
A record number of 875 ICOs are taking place. Startups and projects raise 6.3 billion euros. This draws the attention of securities regulators, who are examining ICOs. More than eighty percent of all ICOs appear to be a scam. Regulation is necessary.
2018 Aspen coin
The St. Regis Aspen Resort in Colorodo is carrying out the first Secuity Token Offering. The real estate company raises 18 million dollars with the issuance of tokens. Each token equals a share in the St. Regis Aspen Resort
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2019 Autradety

Autradety launches the first full-service security token platform worldwide. The company complies with all international regulations regarding securities.
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HOWEY TEST

To determine whether a token is a security, the SEC uses the Howey test. This test is named after the case of the SEC against J.W. Howdy in 1946.

With his company Howey in the Hills inc. Howey planted around 500 hectares of orchards each year.
To finance additional development, he offered half of his land to the public. He advertised on companies and professionals. The investors became landowners, but Howey was allowed to continue planting the land. The investors shared the profit from the sale of their orchards with Howey.

The SEC classified Howey’s company as security on the basis of three elements.
These are still applied to the assessment of tokens:

  • ✓ An investment of money
  • ✓ In a joint venture
  • ✓ With an expectation of profit that comes primarily from the efforts of others

Technical characteristics of A security TOKEN
  • ERC1400
  • ERC20
  • Overige
  • EOS
  • NEP
  • Waves

Autradety uses a smart contract for the technical realization of a security token. It is tailor-made to be fully compliant with securities trading regulations.

Depending on the objectives, the security token is issued in the ERC-1400 or ERC-20 file format. These apply as the universal standards of security tokens.

Conditions can be built in that are specific to security tokens in our smart contract. Such as implementing lock-up periods and transferring security tokens only if the owner and recipient are KYC compliant.

KYC Security tokens


Every financial institution is obliged to screen its customers and clients before it does a transaction with them or on their behalf. This is to prevent money laundering and terrorist financing. This procedure is known as KYC (Know-Your-Customer). With the help of a KYC, a security token issuer must get to know his investor well before it is accepted: who is this person, from which country is he a tax resident? Can he pose a risk? What are reasons for purchasing the security tokens?

comparison of IPO, ICO & STO


Autradety has examined various forms of financing. STOs are the best. They have the regulated nature of an IPO and better technology than ICOs.

 

KENMERK IPO ICO STO
Regulated ✓ – ✓
International ✓ ✓ ✓
Affordable – ✓ ✓
Transparent – +/- ✓
Fraud-resistant +/- – ✓
Fractional – ✓ ✓
Multifunctional – ✓ ✓
Liquid +/- +/- ✓
Quickly tradeable +/- +/- ✓
Accurate +/- +/- ✓

TECHNICAL IMPLEMENTATION PROCESS STO

Analyze

We analyze the
business requirements
of your STO and translate it into a technical design.

Implement

The requirements are stored in a smart contract.
Then the security tokens are generated.

Launch

After completion of the capital round, the security tokens are distributed to the investors.

Manage

Necessary
adjustments to the smart contract code are made.

SECURITY TOKEN ARCHITECTURE

Investors

With an Ethereum wallet address, STO investors
manage and distribute their security tokens.

Security token

A security token is the output of the smart contract.

Smart contract

The smart contract of Autradety stores the business rules
of a STO. Then the smart contract sends the security tokens to the investors.

Blockchain

The security token architecture runs on the Ethereum blockchain. This is the best solution for issuing a security token.