Benefits of Security Tokens

The key advantage of a Security Token is the absence of a third party or an intermediary in the execution of the transaction. For physical assets, there is always such an intermediary, e.g. a bank or a regulating state body. As you see, we get a fundamentally different environment for investing, faster and more convenient. Other advantages of using Securities tokens are usually highlighted as well:

Transparency and anonymity. All movements of funds in a smart contract are easily tracked, but the identities of the participants in the transaction cannot be revealed under any circumstances.

Highest execution speed. For traditional assets, clearing and confirming a transaction takes a long time (sometimes days or even weeks). Blockchain technology fully automates the process, so transactions are executed within seconds, minutes at most.

Endless Up Time. In financial markets, the word uptime refers to a system's period of activity. Unlike traditional financial institutions, blockchain networks operate around the clock with no breaks or weekends.

Sharing. A $100,000 picture can be split into a hundred tokens of $1,000 each. The divisibility of Security Tokens (also called granularity) makes investing more accessible for ordinary market participants with little capital.

Stephen McKeown, a professor at Oregon State University, emphasizes the benefits of using Security Tokens, including the reduction of transaction costs to a minimum, increased market liquidity, simplification of compliance processes through automation, and the ability to form a full-service ecosystem around the token. Given these theses, it is hard not to understand why businesses today seek to tokenize securities, turning them into Security tokens.

Stay tuned! 

Also, if you want to use all available trading tools to increase your capital as soon as possible - follow this link below, or contact us via live chat. Our experts will help you to choose the best strategy for success.