Victor Ugochukwu · Dec 14, 2020 . 5min read
Symbol to dwell into STO issuance facilitates Tokenization
Adopting Symbol will commercially benefit businesses and facilitate modern finance. Tokenization to open new of possibilities for innovative businesses
By Shilika · Jul 16, 2020 . 7min read
In a recent blog post covered by NEM, the nuances of Symbol Blockchain diving into STO issuance and tokenization were broadly discussed. Symbol blockchain is known for supporting the tokenized asset sector. The project aims to support entrepreneurs and businesses by providing easy, safe and secure blockchain platform.
The Symbol Blockchain is designed in such a way that it’s mostly beneficial on a commercial forefront. Hence innovative businesses are adopting Symbol. Moreover, the industry sectors of operating firms adopting Symbol include technology, finance, asset management and construction. Symbol Blockchain is a platform that supports the administration and management of tokenized assests. These blockchain support services are majorly required by businesses in the field of finance or asset management.
Tokenization is the process of creating a digital representation of any tangible or intangible asset that can be transferred or stored over the blockchain network. These blockchain-based token have their value represented on the public ledger.
Intiatives, Tokenization & Technological Advancements
The emergence of tokenization has led to STO(Security token offering). This refers to the combination of Initial Coin offering and Initial Public offering. In short, STO’s are tokenized IPO’s. The security token is however more stringent and complex in nature as compared to ICO’s. Every jurisdiction has its own set of regulations to qualify an asset as a security. The security token derives its the value from the associated asset. It helps companies raise funds like traditional funding in terms of share or bond offerings. Security tokens surpass greater costs, compliance necessities. Hence they are ideal from a regulatory perspective. In order to support this, Symbol was developed.
Symbol has actively participated in advancing the tokenization initiatives by NEM NIS1 chain. The latter has led a foundation for the development of Symbol in terms of technological advancements.
Symbol has been part of various initiatives like the Bank of Lithuania and VNX exchanges. These initiatives have largely contributed to the growth of the blockchain. Symbol has opened a world full of opportunities for businesses with tokenized assets. It has provided a readymade platform to facilitate the growth of modern finance.
On the Tech front
On a tech front, Symbol is developed from scratch in order to maximize it’s potential. This has led to an upgrade in the capabilities of NEM NIS1 chain. Symbol has improved in all aspects in terms of security, ease of use, efficiency, configurability and features. This directly contributes to the tokenization process. The features include Whitelisting, Restrictions, Token Issuance and Token Trading.
In conclusion, the above features help Symbol to provide full-fledged administrative and regulatory support to its stakeholders. It eases the challenges related to Security tokens and STO’s. It also efficiently manages compliance and data protection measures while considering the nature of financial instruments.