What is STO?As an alternative to ICO, STO (Security Token Offering) is a method of raising funds in compliance with securities-related laws and regulations in each country. The STO allows you to issue tokens on the blockchain as existing securities such as stocks, bonds, and fund holdings, enabling more flexible financing. By implementing STO, you can benefit from the following:
- Distribution of dividends, exercise of voting rights, etc. can be handled automatically with smart contracts on the blockchain
- Split ownership of real estate, financial assets, etc. (small ownership)
- Significant reduction in contract time in securities trading (can be contracted and delivered in minutes at the shortest)
- Other processing can be described by smart contracts
System development related to STOSTO debate in Japan has become active, and the usefulness of dealing with securities as security tokens has become widely recognized. In line with this, laws and regulations are being developed, and the development of services that are specifically relevant to the STO has already begun in some companies.
What is required for STO system development?In order to raise funds by STO and secondary distribution of ST, it is necessary to comply with the laws and regulations related to securities in each country as described above. Processing such as transactions related to security tokens can be implemented in smart contracts on the blockchain, so it can be executed automatically without an intermediary. In other words, you will be required to develop smart contracts in accordance with laws and regulations.
Laws and regulations and other rules must be assumed to change due to deregulation and increased regulation, and smart contracts must also be implemented in Upgradable. For example, if the maximum amount that can be invested per person is only increased, it is possible to change the parameter, but it is necessary to change the logic to add the rule “Do not buy or sell unless it is among the examined investors” later. In addition, if you are creating a platform for security tokens that can be used not only in Japan but also overseas, you must be able to easily “add or remove logic” so that you can comply with the regulations of each country.
Note: As of October 1, 2019, there are no self-regulations in Japan as a “security token, the right to transfer electronic records. “When issuing security tokens, you must comply with the regulations of the self-regulatory body established in the future. On the other hand, if you are developing digital tokens that handle existing securities on the blockchain, you can proceed within the scope of self-regulatory regulations of the Japan Securities Dealers Association (JSDA).
Strengths of our blockchain system developmentWhile the above-mentioned flexible system support is required, smart contracts such as Ethereum are not good at upgrading features. For this reason, there are many achievements in blockchain development such as our company, and the role that development companies that have accumulated know-how are required is very important. Blockchain technology is not a mature technology. However, we believe that by launching new services using blockchain faster than other companies, we can benefit from the paradigm shift that blockchain brings. We will contribute based on our track record in order to make good use of blockchain technology that is not mature.
- More than 60 projects. This includes development for commercial services using public chains.
- We have a track record of developing upgradable smart contracts.
- We conduct business consulting and STO platform development related to STO, and have the know-how of STO development.
For inquiries about our services, please contact us.
Consensus Base is the first company in Japan specializing in blockchain technology and provides advice, consulting, development and education as a company with specialized knowledge and technology.
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