Security Tokens Will Shape the Future of Asset Management in Asia
South-East Asia has been a strategic region for the crypto and blockchain industry. This is a bit of a bitter cryptocurrency worldwide. Shanty ICOs to tokenization of securities?
We believe that not We only Asia is still enthusiastic about crypto and blockchain, but also that Security Token Offerings will shape the future of the new era of capital in the management region .
In recent years, we've seen a new cohort of Asian investors emerging. The process of investment management. They are open to investing in financial instruments.
They are less suspicious, even when they’re losing their money. It was not a problem to make a difference in your life. readiness to deal with crypto-fueled fundraising.
Why Are Security For Asian Investors?
The majority of ICOs provided their contributors with utility tokens that turned out to be nothing but ‘candy wraps’ in case of any trouble with the project. Security Token Offerings, conversely, provide the token holders with something valuable and tradable, even outside of the project’s ecosystem. Security tokens can represent a wide range of assets, including a share in the company’s valuable property, tokenized equities, fractional ownership, debt tokens (which are basically loans with an interest rate), etc. Even in case of a bad scenario, the investors have an opportunity to redeem their contributions by selling the assets they’re holding.
Asian investors these days seek ways to diversify their crypto portfolio. The current exchange rates make in unprofitable to transfer a large amount of crypto into fiat money. This brings us back to security tokens. By purchasing them, an investor backs a portion of his crypto portfolio by the real world assets. He still has these assets in a digital form, but in case of any problems, he is protected by the applicable laws concerning the authorized trading of securities, in particularly the same way as with traditional equities, bonds, etc.
And the second point, purchasing security tokens is much easier than buying traditional assets since all the excess paperwork and intermediation is removed from the process. The investors can buy security tokens directly from the issuer — or on the security token exchanges. Some of the projects even choose to run Initial Exchange Offerings (IEO) — it allows them to enter the market faster and to shift the KYC (Know Your Client) and AML (Anti Money Laundering) procedures to the exchange’s facilities.
Given that the security sector tokens are seen. They are tirelessly searching for laws and conditions of jurisdiction. This is why we strongly advise our business planning to address the Asian market alongside the EU and US markets.
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