Security Token offerings, or STOs, will only become more popular. Cryptocurrency and blockchain platforms need to support this business model. Stratis has unveiled its new platform for STOs, which focuses on regulatory compliance.
The Difference Between an ICO and STO
In the year 2017, Initial Coin Offerings were very hot. Several dozen projects raised millions of dollars without too many problems. More importantly, it was an investment format everyone could participate in. ICOs Have never been subject to identity checks, AML compliance, or anything along those lines.
Security Token Offerings are very different. They are widely considered as the “legitimate version of an ICO”. Only approved and verified investors can partake. For companies exploring this business model, adhering to regulatory compliance is an absolute must. That also means that platforms facilitating this business model need to uphold certain standards.
Stratis Upgrades its Existing Platform
Rather than building from scratch, the Stratis team took a different approach. Their existing ICO platform has been modified to facilitate STOs. Several aspects had to be revamped to make this possible. That includes introducing additional legal features first and foremost. Government agencies are cracking down on projects not adhering to regulatory compliance, after all.
Stratis CEO Chris Trew adds:
“We are delighted to launch our STO platform, one of the key milestones of our 2019 Development Roadmap. The STO platform builds on the functionality of the Stratis ICO platform with the addition of several new features that satisfy the rigorous regulatory requirements needed to conduct STOs. Our STO Platform is highly secure, flexible and scalable, making it easy for businesses of any size to raise money through the tokenization of their assets.”
The Stratis STO platform is built following an open dialog with the SEC in the US. As such, it is now deemed fully compliant with existing requirements. By introducing both Know-Your-Customer and Anti money Laundering solutions, there can be no illegitimate offerings. Moreover, the platform has been tested rigorously. If an update in regulatory requirements is needed, the STO platform will be modified accordingly.
Core Features Explained
Stratis’ new STO platform offers some crucial features. First of all, there is real-time pricing. Such an aspect is a must when providing fiat currency and cryptocurrency support. Data is collected from multiple providers to display the correct prices to STO participants.
Accrediting tokens to the right individual is crucial.To make this process straightforward, Stratis integrates ID-based token issuance. Investors are given unique IDs which make it easier to allocate tokens to. This system adheres to the current KYC and AML laws.
As far as cryptocurrency support goes, the options are somewhat limited. STO Investors can pay with either Bitcoin or STRAT. There is no indication if other currencies will be supported in the future.