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With blockchain industry being developed and adopted at an unprecedented rate, there is a paradigm shift by organizations that are not traditionally associated with it. IBM, Google, and even Intel have programs that are looking at possible applications of decentralized technology in their businesses. Thanks to Ethereum, a number of platforms have been launched (with hundreds more in line) that cater for a variety of services, from gaming to banking.

The Regulation Issue

Even with such a huge number of platforms and services catering to nearly every sector of trade and industry, the market is riddled with issues. The foremost and the most important one is the lack of compliance with securities regulation laws. Tokens in the blockchain industry are usually in the form of utility ones that offer no rights into the organization by its investor. This has led to a lot of fraud and pump and dump schemes.

The answer to the issue is a proper security token that has all the characteristics of a security, albeit in the digital form.

Blockchain App Factory’s STO

Blockchain App Factory, a decentralized solutions provider that offers services ranging from token generation event (TGE) management to complete custom blockchain setup, has recently announced its Security Token Offering (STO) development program.

Security tokens comply with all the bylaws and regulations of SEC and therefore, offer more security to institutional investors, helping to protect the rights of investors. The speed, security and smart contract ability of security tokens, bundled with a very low floatation cost, means a win-win situation for both investors and the security floater.

The digitization of illiquid assets, equities, bonds, and real estate is a benefit to the investors. With the transparent nature of blockchain, there is clarity of financial transactions, and an SEC-compliant exchange means that the market will not be able to be manipulated.

James Harper, Director of Sales & Business Development for Blockchain App Factory, said, “Many traditional companies will delist from traditional stock exchanges to move into blockchain due to high barriers to entry and the exorbitant cost for regulatory compliance. Traditional methods of raising capital like Venture Capital, Bonds, Stocks will be tokenized. We expect real estate especially the commercial real estate will be the first movers into the STO market.”

With Blockchain App Factory’s STO services, a multi-trillion market will now be able to shift to the decentralized age.

About Blockchain Factory App

Offering a myriad of blockchain solutions, Blockchain App Factory gives its clients the ability to not only launch their own tokens, wallets, and services on any blockchain backbone they prefer, but with a white label blockchain available, they can also possess their own.

The organization caters to a number of big names including Shell, McDonald’s, DasCoin, and Ether Gold. With the STO of Blockchain App Factor services now available, traditional companies can now enter the blockchain era.

For more information on Security Token services, visit their website: https://www.blockchainappfactory.com/

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