What is a Security Token Exchange?

When a token is subjected to federal security regulations and can derive its value from an external, tradable asset, it is categorized as a security token.
It is true that the process can seem complicated, but there are a lot of benefits with a security token issuance. Tokenizing securities improves the liquidity of underlying assets which can engage more investors.
Security tokens also come up with other benefits like increased market efficiency, lower issuance fees and fractionalization of larger assets. If a startup meets the required regulatory obligations, the security token offering can create a vast potential for the variety of applications.
Two types of Security Token Exchange:
(1) Utility Tokens:
These type of tokes are used for creating Initial Coin Offerings ( ICO ) for raising funds. These tokens does not equate to a share in the company, but can be used to facilitate a particular event, transaction or value in the operations of the company. Eg: ETH is used to reward miners a fee for lending resources to exeute smart contracts.
(2) Security Tokens or Equity Tokens:
These Tokens are also Crypto based, but it differs from normal Utility Tokens. These tokens are very similar to the shares you hold in the normal securities market. Each token constitutes a security or share of a company. These tokens will need to abide to all the compliance enforced by regulatory bodies like SEC etc. It follows the process and lifecycle of any normal stock ( Dividend, Local regulations etc. )
A Security Token Exchange or an Equity Token Exchange is a special type of exchange that hosts only Security Tokens. Any asset you purchase here is not a normal utility token, but a share of the issuing company.
Our Security Token Trading Platform Development Process
We follow a well defined process for our security exchange platform development. Before starting to develop any new feature in this STO Trading Script, we always take the time to study t

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