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Security Token Exchange: What’s It All About?

Blockchain technology always surprises us with a new term that’s completely revolutionizing at least one aspect of our lives. First, we were learning what cryptocurrencies are and how the concept of investing is changing due to them, and now we’re hearing a lot of buzzwords that often lack explanations to understand their full potential. 

So, if you’re curious to learn what STO and STO exchange is, we’ve gathered all the information you will need to know about it. 

Security Tokens Offerings

Security tokens offerings or STO are reliable digital assets tokens but in the crypto-verse. When compared to the Initial Coin Offering (ICO), security tokens offerings are supported by real-world assets. But, what’s important to know about these tokens is that they are compliant with government regulations, so it’s not affected by government interference when trading asset tokens. 

As they are becoming more popular, there is also a rise in demand for reliable STO exchange among investors when trading digital assets for fiat currency or any other altcoins. 

Securities

Securities are tradable financial assets and specific values assigned to them. The securities are proof of ownership on any financial instrument, for example, stocks, index funds, bonds, etc. As STOs have value, they can be traded in the secondary market in exchange for other cryptocurrencies or fiat currencies. These tokens have a volatile nature so many countries are now accepting them with specific government regulations – Malta, Canada, Switzerland, the USA, Estonia, and others.

As the demand for digital cryptocurrencies and security tokens is constantly growing, there is also the need for a fully-functional STO exchange platform that will connect global investors with the projects and increase liquidity for the token issuers. 

Cryptocurrency Exchange Margin

We are becoming a digital generation and we’re evolving every day even more towards it. Although in the first phase, there are a few exchanges in the market. There is an incredible growth potential for a secured and feature-rich exchange to be capitalized. So, if you were thinking of building an STO exchange, it can be realized by an STO exchange development platform, as it has the practical experience needed for this field. 

To understand better the STO exchange and how it affects tokenized payments, take a look at the key features:

  • connected to external exchange to increase liquidity
  • escrow system
  • numerous currency transaction
  • numerous languages
  • payment gateway integrations

Tokenized Payments

When talking about security, it’s essential to mention that payment tokenization protects customers using tokenizing as a part of their payment. For instance, Apple Pay replaces your payment card details with randomly generated numbers, also known as pay tokens. This number is sent to Apple, so it cannot be extracted into anything valuable to fraudsters.

In Android Pay, we have a similar process. Once your app has been loaded into the app, Google will create a pay token that will represent your account number. Besides Apple and Android, let’s also mention app tokenization. When buying directly from an app, by having a pay token instead of raw credit card details, your bank information will stay locked and inaccessible to others. 

Luckily, even online shopping activities are protected by tokenization. Stores that are using it will never have access to your sensitive data, and if they were to be attacked, all this person will see is a bunch of randomized tokens. 

Wrap Up

Another thing that makes tokenization great is that the tokens differ from one online retailer to another, so if a security breach occurs, all tokens that were issued to this particular website will be disabled, allowing customers to replace their cards. Of course, asset tokenization companies still have a lot of work to get done, but for those who are concerned with security when using their money online, tokenization is one of the safest methods at the moment.

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