Security Tokens

None of the following represents legal advice. The following is for informational purposes only. If you are planning to launch or invest in a security token please consult your attorney.

What is a security token?

Security tokens are digital, liquid contracts for fractions of any asset like real estate or corporate stock.

What is a security token offering or STO?

A security token offering is a sale of security token.

Where can security tokens be exchanged?

There are currently a variety of exchanges where Security Tokens can be purchased including TZero. 

What does it cost to launch a security token?

A company looking to launch a security token must think through a multitude of steps. Polylaunch recently set up a platform for launching your own token. It's called Polymesh Studio. As of this writing, the cost to reserver a ticker symbol was roughly $50 and the Cost to lauch a security token was around $1400. Please note this doesn't include the legal costs of incorporation only the security token aspect. Our best guess is $50,000 for a full security token offering. We will get back to this aspect as there are more cases to look at.

Some of the steps of launching a security token:

What are the benefits of security tokens?

Programmability - Just think what can be done with equity when it isn't solely on a piece of paper locked up in an attorney's office. 

Liquidity - Why are private securities currently so combersome? They can be traded or exchanged but it requires high costs in dollars and time. I definitely say protect investors but at the same time enable liquidity.

Speed - Transactions can happen almost instantly.  

More content coming soon.