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What is an STO platform (What is an STO exchange)?

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What is an STO platform? Why do we need a blockchain-based platform for issuing

What is an STO platform (What is an STO exchange)?

What is an STO platform? Why do we need a blockchain-based platform for issuing securities or financing assets (providing tokenized stocks to investors)? Simply put, STO is a new type of investment tool. According to the definition, “tokens” are a new type of financial product represented, traded, or circulated in digital form, representing specific underlying information such as real estate or bonds. In traditional markets, companies can sell stocks, fund shares, and equity directly to buyers, or use them for various purposes including loans, equity transfers, and insurance. However, compared to traditional securities, these technologies cannot meet the requirements of companies for their financial situations. Currently, most cryptocurrency exchanges are seeking to transfer customer funds to STO platforms. Since these types of companies are mostly in the initial stage and do not intend to raise new investments immediately, they choose STOs that do not fully comply with standards as a way to raise funds. Therefore, it is very challenging for companies that want to use ICO and obtain approval to further develop their assets.

What is an STO exchange?

In the world of blockchain, STO refers to a trading platform for the issuance of security-type tokens. Currently, there are some exchanges based on STO (Security Token Offering) technology to support STO, such as BitMEX and Coinbase. However, because STO is still in its early stages, most people do not have a clear understanding of STO, and therefore cannot comprehend its specific content.

STO represents the creation of a new asset category, which has the following characteristics: (1) strong market demand; (2) ample liquidity; (3) investors can freely choose investment targets. These are all characteristics of traditional financial markets, and STO will become an important infrastructure for the future digital economy.

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