Security Token Offering is a digitized & global method of raising capital which is made possible by the convergence of following three domains:
1. Fin-Tech: Blockchain has changed the financial technology industry by introducing tokenized securities to the world. The monetary incentives to the investors have been linked to company’s performance and are automated with the help of smart contracts.
2. Legal-Tech: Embedding the securities laws into the smart contract itself such as whether the issued security is exempted under Regulation D or S has made it efficient to launch the offering without violating security regulations.
3. Reg-Tech: The digitisation of mandatory regulatory processes such as AML, KYC, Accrediation checks etc. has made the funding process efficient, fast & transparent.