First, what is the STO chain?
The STO chain is a blockchain specifically designed for securities tokens.
The STO chain is an institutional-grade permissioned blockchain designed for regulated assets. The STO chain opens up possibilities for new financial products by simplifying traditional complex processes and addressing issues such as governance, customer identity recognition, compliance, privacy protection, and payments.
The first securities permissioned public blockchain
The STO chain is a permissioned public blockchain, where all issuers, investors, node operators, and stakers must first pass verification by customer identity recognition agencies.
The five core elements of STO:
ID
Built-in ID and single information source, supporting customer onboarding across product categories. Data can be shared programmatically with trusted parties.
Governance
Self-manage your exclusive instance on the STO chain. Run the network within your infrastructure and manage access rights and permission configurations.
Privacy protection
Transaction amounts, account balances, asset types, and other information remain confidential to protect customer privacy. Advanced encryption is used to ensure that only relevant parties can decrypt data.
Payment
Through on-chain assets, compliance rules, and atomic settlement, custodians can achieve efficient post-trade settlement without giving control to third-party smart contracts.
Compliance
Simplifying compliance processes releases more resources. The built-in functionalities of asset tokens allow for their automatic execution without extra smart contract support.
Utilizing blockchain for asset tokenization is the future of finance.
The STO chain enables institutions to tokenize regulated assets and helps address the emerging global tokenization market, which is expected to reach a scale of $5 trillion by 2025.
What is asset tokenization?
Asset tokenization is the process of converting ownership value (including related rights) stored in tangible and intangible assets into digital tokens. Through asset tokenization, individuals can assert digital ownership of assets without relying on centralized intermediaries and can store and trade them.
Tokens can represent property rights that exist only on the blockchain (e.g., unverified securities) or physical and digital assets off-chain. Depending on the characteristics of the assets and regulatory requirements, they can be classified as securities, commodities, or other asset classes.
In the securities market, tokenization can be used for securitization, converting low-liquidity assets into more liquid securities instruments.
Entering a vast new market
Major financial institutions are continuously expanding the tokenization of physical assets in their pursuit of blockchain efficiency and economic potential. Many traditional financial institutions have begun to offer tokenized products.
The rapid growth of the tokenization market indicates that forward-thinking institutions have recognized that asset tokenization can not only create market value but also significantly change the interaction between issuers and investors. Many institutions have already joined in. Now join the blockchain built specifically for regulated asset tokenization - the STO chain!
Innovation in financial services
Transparency in payment and data flow, immutability of transaction records, enhanced liquidity and traceability, more efficient operational cost management, stronger risk control, clear proof of ownership, and the ability to split assets collectively drive the market to become fairer, more reasonable, and transparent. Issuers can access a broader investor base and create entirely new asset classes. Meanwhile, individual investors can obtain more transparent data, enabling them to make more informed investment decisions in previously inaccessible markets.
How to create tokenized assets on the STO chain?
Creating securities tokens
Configure securities tokens on the blockchain to replace physical or digital assets. Tokens on the STO chain are created at the protocol layer, thus eliminating the need for additional smart contracts to support each securities token.
Compliance rule setting
Utilize the compliance engine of the STO chain to flexibly set ownership and trading rules, ensuring strict adherence to transaction limitations, KYC/AML requirements, and securities regulations.
Token distribution
Tokens can be issued with a simple click, securely transferring assets to existing shareholders, related parties, and potential accounts, while executing extensive compliance requirements. Token prices can be set as needed and qualified managers designated to securely manage the token collection.
Corporate activity management
Execute corporate activities on-chain to address various issues related to benefits, organizational restructuring, capital allocation, and voting. Issuers only need to input minimal information, and the system engine can determine qualifications, schedule record dates, and allocate capital and update records as necessary.
For retail investors, if you want to layout some sector combinations, then the emerging sector of STO is worth continuously tracking and paying attention to!
The current price of STO is relatively firm, stabilizing around the 0.2 line. Currently, no escape volume has been found in the secondary market, and as long as the market doesn't have any major issues, there is still momentum for further gains!
Since the exclusive TGE on Binance launched on April 3rd, the lower point has rebounded 4 times, which is quite a good target! It shows that the market's recognition of this sector is worthy of capital recognition!
Currently, the circulating market value is 47 million, which is quite stable for the recent market!
Subsequently, pay attention to the support strength of the 0.15/0.11/0.09 pullback tests, as well as bullish counterattack signals to look for some opportunities!
Pay close attention to the 0.195 line for short-term long and short battles; as long as it doesn't break, there is still upward momentum!
DYOR, everyone can research and follow up on this!
