The STO market fascinates more and more different categories of investors, interested in the world of blockchain as a method of the asset distribution.
Blockchain allows security tokens to integrate the technology at each step of the standard investment process. The distributed ledger digitally records and stores all assets. This provides transparency, speed and security for data management. By eliminating traditional bureaucracy, costs are reduced as well. Thanks to blockchain, the entire finance sector experiences renewal in terms of how it handles transparency, speed and security for data. The distributed ledger cuts through bureaucracy, lowering costs in the process.
Thanks to blockchain, the entire finance sector is renewed in terms of transparency, speed and security for data management and therefore, eliminating traditional bureaucracy, also in terms of costs.
STO investors vs traditional finance investors
Investors in digital assets or security token offerings (STOs) are inclined to use blockchain technology. STO investors have different preferences based on their desired risk and return, just like in traditional finance.
The type of financial product an investor chooses determines the underlying asset. For example, startup investors seeking venture capital or crowdfunding remain high risk. Even if assets come from STOs, their risk tolerance stays the same.
Contrastingly, real estate investors like family offices and pension funds aim for lower but safer returns. Their risk profile does not change if a real estate project utilizes digital tokens instead of traditional assets.
Crypto investors, as early adopters, followed initial coin offerings and now pursue STOs. This model offers a balance between cryptocurrency and compliance. Unique to this group, their passion drives risk tolerance beyond traditional investors.
Overall, no single formula identifies STO investors. Their appproach reflects the desired risk-return balance, regardless of asset class. Digitalization simply provides access to new opportunities within established risk profiles. The personality of each investor determines the optimal products and structures, on or off the blockchain.
All those inclined to use blockchain for distributing assets actively invest in digital assets or STOs without a doubt.
Blockchain and STO: the way to democratize investments
The development of STOs is primarily aimed at facilitating investment by increasing the number of players. This is a real paradigm that revolves around three focuses: technology, law and finance. The blockchain completely revolutionizes traditional finance in a regulated way. It makes finance more efficient and democratizes access to projects for investors.Before, some retail investors struggled to access early-stage start-up projects. Now, decentralization technology eases the game. This new tech gives investors more opportunities. The STO model also benefits entrepreneurs seeking capital. They can tap more funding sources than traditional finance. This decentralizes early-stage investing. Overall, those interested in blockchain prioritize distributing, decentralizing, and democratizing investments. They remain enthralled by blockchain’s benefits. This attracts them to become STO investors.
Access EDSX’s dedicated section on how to become an STO investor and access existing primary market and exchange projects to start trading with your tokens.
Based in Zug, the platform is fully compliant with all Swiss laws related to financial intermediaries, banking, anti-money laundering, and organized trading facilities. Among its core values, there are innovative solutions through blockchain technology, which ensures security and liquidity.
EDSX is the first platform in Europe with primary and secondary markets for both institutional and retails. EDSX is a pioneering platform that employs the world’s leading technology to globally list security tokens in both primary and secondary markets, listing digital securities of real financial instruments to the public with a decentralized peer-to-peer exchange. Our goal is to fully engage every aspect of the financial revolution.
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