This article was first published on OntologyNetwork - Medium
What can Ontology do for security token offerings (STOs)?
Ontology announces the new OEP-506 token standard
STOs have increased in popularity recently, even being regarded by some as the next capital market revolution. Ontology’s technology philosophy is to be transparent, regulatory-friendly, and utilize decentralized digital identity. We have conducted a series of research and case studies on what we can do to support STOs and recently released the OEP-506 token standard proposal. OEP-506 standardizes a series of interfaces for security token offerings (STOs) and meets other requirements they have, such as KYC completion.
In this article, we take a deeper look at STOs and related services and then talk about how Ontology fits into this process.
What are STOs?
STOs, or security token offerings, are securities that are tokenized and then distributed in private and public sales to receive funding under regulatory frameworks. Private sales are still the main component of this process, and risk preference makes high net worth customers and institutions the main participants.
STOs take existing financial assets or interests into blockchain-based digital assets, such as corporate equity, creditor’s rights, intellectual property rights, trust shares, or precious metals. STO projects need to undergo compliance review, project code audits, and team background checks. They are also subject to strict review before registration.
It is generally accepted that STOs have improved the efficiency of project financing, expanded security tokenization, and reduced barriers to user access — greatly improving global liquidity of assets.
What can Ontology do for STOs?
An infrastructure that supports STOs needs to be able to support full lifecycle management and give the issuer access to the relevant dApp service. The necessary services include:
- Trust services: Management of participant rights at all levels. Interfaces should be configured for initial distribution, additional issuance, token burning, rights removal, and so on;
- Registration services: Investor information registration and review. ...
To keep reading, please go to the original article at:
OntologyNetwork - Medium