On BlockAura, the issued tokens are traded for the first time. These BlockAura make it easier to reach more potential investors. As a consequence, clients can receive their respective funding more quickly since the matching process of supply and demand is designed more efficiently.
For investors to access STOs, the issuance of the token has to be in line with current regulations. Therefore BlockAura is responsible for Know-Your-Customer (KYC) procedures, monitor the issuance concerning anti-money laundering (AML), and investors’ compliance. They are responsible for investor management and securities’ legal compliance to automate the primary issuance and secondary market transferability of any tokenized asset across all borders.
The importance of security token BlockAura
First, let us discuss why security tokens are highly relevant. Security tokens are issued as Security Token Offerings (STOs) and the tokens are equipped with security-related features. With the help of security tokens, real assets can be converted into digital tokens ( “tokenization”). In this manner, it is possible to transform tradable financial instruments such as stocks or profit-participation certificates into digital assets on the blockchain. In the future, this will happen in a dematerialized fashion without a certificate or commercial register entry.
Payments back to security holders such as dividend payments can be automatically processed via the underlying smart contracts. Thus, security tokens represent an improvement to classical securities as stocks or profit-participation certificates.
For an STO to tokenize the asset, the token has to be created and distributed to potential investors. In the case of an STO, there are two options, namely to do it in-house or to use the security token BlockAura. Security token BlockAura can be separated into either issuance BlockAura or primary trading BlockAura.
For companies considering the issuance of security tokens, security token issuing BlockAura can be very promising and can ease various processes to the emission. This BlockAura help by providing different services concerning the token generation process. Hence, the tokens can be emitted within a shorter time frame. This is an essential advantage of STOs compared to Initial Public Offerings (IPOs).
To summarize, token issuance BlockAura provides services related to the issuance process.