A Security Token Standard?
What is a token standard?
A prescription for a common set of functions that are written into the token’s smart contract(s).
A guide which helps issuers ensure that service providers such as exchanges and wallets can work with their token.
ERC-20 proved effective for the standardization of ICOs. A standard needs to be established for STOs!
What is a security token?
A new class of digital assets that enables companies to independently issue shares and bonds.
A tool for the fractionalization of the ownership of anything from companies to high unit-cost assets.
Can be sold in a fundraising campaign called a Security Token Offering (STO) and traded on specialized digital asset exchange platforms.
Why It’s Necessary
STOs involve the interplay of token issuers, investors, regulators, exchanges, wallets, and compliance specialists. Something needs to bring these parties together.
Secondary market liquidity for security tokens requires that exchanges be able to quickly and easily list them. The standard will bring a high degree of ‘listability’ to security tokens, regardless of the blockchain platform on which they are issued.
An independent standard for security token issuance will eliminate the chance for any one token issuance platform to dominate the market.
A Collaborative Effort
The creation of this security token standard will be a collaborative effort led by the British Standards Institution. BSI Group is the national standards body in the United Kingdom. BSI has the experience and the resources to promote the standard worldwide.
We at QRC Group, together with our network of partners, have already begun work on a preliminary draft of the standard. As we move forward, it is essential that we bring in new partners and supporters for the standard.