On May 1st, Vanbex officially released its new token issuance platform called Rocket 2.0. This comes at a time when Security Token Offerings are gaining increased momentum, some seeing it as a means to prevent another emerging financial crisis.
Security tokens or digital securities are a vehicle of ownership, based on the blockchain. Contrary to Bitcoin and other similar cryptocurrencies, these tokens carry an underlying value, as they represent other tradable financial assets. These assets can be equity shares of companies, ownership of intellectual property, and even ownership of real estate or pieces of art. The underlying asset can be practically anything, and digital securities make them not only extremely liquid, but also very tangible.
Consider fine real estate, which features pricing that’s out of reach of most people and which can alienate even many wealthy buyers. The buyer must be very rich to even consider the space, making it difficult to find clients. Even after a buyer is found, it can take weeks or months before the deal is closed, actually actually driving prices down since buyers know how hard it is to sell.
Security tokens could change this. By way of comparison, security tokens could do to traditional securities what email did to snail mail. Not only do they make fractional ownership possible, but also make trading those assets much easier. The entire process is stored transparently on the blockchain, which offers a decentralized and fair platform for trading.
Unlike other blockchain tokens, security tokens are also extremely regulated. They start as securities and operate within legal boundaries. While this seemingly makes them more difficult to pick up than the traditional, unregulated cryptocurrencies, they bring a layer of protection and regulation for investors that are necessary for them to enter other markets. Digital currencies may step beyond the blockchain world and tokenize traditional assets that were previously only available on stock markets. By releasing Rocket 2.0, Vanbex is taking a step in that direction.
Rocket enables security token issuance available for people without any blockchain knowledge: it offers a web environment where issuers may set up their project, fill out the offering dates and build their landing page and deploy it on the blockchain without writing a single line of code (currently, Rocket issues tokens on the Ethereum and Rootstock blockchain protocols).
The platform also assists with staying compliant with regulatory laws, and many requirements are baked in the tool to ensure they are met as part of the setup process.
But asset ownership is just one of the many features security tokens bring; they also enable dividends, voting and governance rights and special privileges. Vanbex is also working towards these goals: features in development being voting, dividends, cap table management, and secondary trading.
While many believe that security tokens are here to stay and Nasdaq predicts that 2019 will be the year of the STO, tools such as Rocket enable security token issuance for non-blockchain savvy companies and investors.