ICO Launch Malta has pioneered the security token offering sector, enabling clients to take their venture public with its robust security token offering platform. The company takes a client’s existing asset, something that exists in the real world (such as startup equity, rental income, real estate, or gold bars), and builds a token that represents that asset. STOs are unburdened by the cost of commissioned intermediaries (such as banks, underwriters insurers etc) that might otherwise lie between the client company and investors.
ICO Launch Malta CEO Jan Sammut told Investitin, “We understand the client’s need to convert illiquid assets into tokenized equity, such as, for example, tokenizing rental income to raise funds for a new real estate project. A large asset, such as an office tower, or group of large assets, like a chain of hotels, can be fractionally equitized on our STO platform. Even institutional investors can equitize assets to yield a pool of capital.”
Types of Security Tokens
- Equity Token: Each token is backed by company stock. Token holders have the same rights as stockholders when it comes to dividend issuance and voting. Equity tokens may restrict transferability to a central whitelist.
- Reserve Assets Token: Each token is backed by a company’s assets reserve of a commodity with which it trades, like real estate or precious metals.
- Debt Token: Each token is backed by a company’s promise to pay back debt.
Unlike the familiar network-backed “protocol” tokens that only exist in a blockchain network, a “security token” or “asset-backed token” holds an intrinsic value that can yield dividends paid on fractional ownership of the tokenized asset. For example, one security token could equal one percent of a building’s revenue streams. ICO Malta develops a tokenomic liquidity structure that best suits the client’s fundraising needs and growth plan.
ICO Launch Malta helps its STO clients write and submit the required prospectus to the Malta Financial Services Authority (MFSA) for approval. This white paper explains to prospective investors the nature of the problem to be solved, the business model to be built around the solution, financial projections, management, and advisory team details, and a roadmap for the next three or more years.
ICO Launch Malta’s development team have built a track record of developing ERC20 compliant security tokens that leverage the strengths of the existing Ethereum platform, whilst benefiting from customized behavior, in effect, creating cryptographic analogs of traditional financial instruments. Marketing and Fundraising
A Security token offering cannot include promises of returns from the issuing company and cannot mention price projections. But an STO does need a certain degree of marketing and hype-building to succeed. This is where a well-executed below the line marketing campaign comes in to make a security token desirable through proxy marketing.
STO Issuer Dashboard with Compliance Engine
The MFSA requires STO compliance procedures like KYC and AML to ensure that rogue entities do not hold any tokens. ICO Launch Malta’s STO platform features government compliant whitelisting process modules on a dashboard from which the issuance is managed, and audited reporting of the process is logged for submission to the MFSA, token buyers, and other entities as may be required by law. ERC20 integration with the Ethereum network can add token buyer wallet addresses to the smart contract whitelist and then automatically execute the transaction to fulfill their order.
Investor Dashboard with Voting and Dividend Issuance
Security tokens investors are stakeholders to whom the issuer must answer and pay dividends. ICO Launch Malta provides the client’s investors with a clean and intuitive interface that provides company updates, voting capability, and dividend issuance.