Asset Backed Securities - STOs

What is a Security Token Offering?

Security Token Offering, or an STO, is the issuance of tokens representing ownership of the underlying assets or financial instruments. Tokens are issued based on any asset considered a security, for example, stocks, bonds, trusts, and funds. Instead of a paper certificate, the investors receive security tokens containing their legal rights and ownership information. In crypto STO, the transaction between an investor and an issuer is recorded on the blockchain.

From the issuer perspective, a security token offering is a type of crowdfunding. In comparison to crypto ICO (initial coin offering), STO represents a contract between parties, compliant with the security law and other regulations. Security token offering is similar to IPO (initial public offering); But where IPO can only be used to offer public shares of a private company to accredited investors, security tokens can represent any investable assets available also to retail investors, following a standard KYC onboarding.

Benefits of STO tokens

Increased Liquidity

Tokenization increases the liquidity of assets through fractionization, 24/7 asset tradability, and access to a global network of investors.

Lower Cost Operations

Blockchain technology allows STOs to lower the cost by excluding middlemen like brokers, sellers, notaries, and lawyers.

24/7 Access

You can sell or exchange your asset-baked tokens at any time, using Cocoricos exchange, or other crypto exchanges and secondary markets.

New Investors

You can tokenize local assets and sell to a global network of buyers, including retail investors around the world.

Lower risk

Security tokens are less risky as they comply with regulation and represent the real-world asset of certain market value.

Cocoricos - a Trusted STO Exchange Platform

Cocoricos is a leading securitization and crypto-assets exchange platform. We offer comprehensive token issuance services with top-notch legal counseling and technical support.

With Cocoricos, you can easily issue security tokens based on real-world assets, for example, your house or a piece of art. You decide on a number of tokens, their price, and the rules of the sale. We take care of everything else and connect you to our global network of investors.

Cocoricos is also a marketplace ecosystem where you browse security token offerings list, invest in real-world assets, purchase cryptocurrency, and exchange crypto-assets. Through the Cocoricos platform, you can manage your assets, obtain dividends from your investment, purchase cryptocurrencies and tokens, or even launch your own crowdfunding.

The Future of Security Tokens – New Prospects

Securitization of the real-world assets is taking the financial markets by the storm. The traditional exchanges are working on legal frameworks for the emerging tokenized asset economy. While the crypto platforms and exchanges, like Cocoricos, are at the forefront of the new trends and shaping the future of the financial markets.

Security tokens can be issued based on any financial instrument, like stocks, bonds, funds, or trusts, for example, real estate investment trusts (REITs). Real-world assets and companies can also be tokenized. In the future, tokens could be backed by any kind of real or virtual value.

STOs open new opportunities for traders, investors, businesses, and private owners. Anyone could now acquire, trade, and issue security tokens. Fractionization offers the opportunity for co-ownership of assets and lowers entry barriers for retail investors. While 24/7 access to exchanges and secondary markets online, begins an entirely new era for the asset economy. Thanks to the blockchain technology, the tokens can be traded almost instantly, more securely, and at a lower cost.