We are pleased to announce the listing of the new token Standard Tokenization Protocol(STPT) in our INR market on 5th April 2020 at 6:00 PM(IST). With this listing, STPT will now be available in 4 different markets to trade namely STPT/INR, STPT/BNB, STPT/USDT, STPT/BTC.
Standard Tokenization Protocol(STPT) is an open-source standard defining how tokenized assets are issued and transferred while complying with all necessary regulations. Tokens built on top of the STP-Standard will be fully compliant across jurisdictions and transferable across any blockchain platform.
The cost-effectiveness of issuing private securities exercising an initial or follow on the offering of stocks or bonds. These traditional options have many problems and irregularities in it, which makes companies face multiple problems:
- The issuance and secondary trading of privately issued securities require middlemen, exchanges, and brokers in a highly manual and expensive process that places a high regulatory risk on the issuer.
- To minimize the regulatory risk and simplify the manual process of private security issuance and trading, many restrictions are typically imposed on the asset such as limits on the number of investors, type of investors, concentration of investors, holding period of investment, etc.
- The consequence of these restrictions is that private securities are much less liquid than public securities. Because of this illiquidity, the price of private securities is discounted by what is known as the “Illiquidity Discount,” often 20-30% below the asset’s true market value, hurting issuers and sellers while adding unnecessary risk for buyers.
To eliminate this problem many security exchanges across the world are trying to implement blockchain technology into their traditional exchanges. There are many benefits in issuing assets on blockchain like Programmability, Fractional Ownership, Increased Liquidity, Peer-to-Peer Transfer, automated Compliance as well as possibilities of making new Financial Products.
STP was designed to solve this problem by defining a new standard tokenization protocol on the blockchain that those traditional securities exchanges can easily implement on. STP network is decentralized for the tokenization of assets which is built on top of STP standard for tokens.
STP-Standard is an open-source standard that defines how ownership of tokenized assets are generated, issued, sent, and received while complying with all necessary regulations. Everything built on top of the STP-Standard will use the protocol’s on-chain Compliance Validator to verify compliance with relevant regulations (in the below example this includes KYC, AML, Accreditation, etc.) as well as any issuer-specific requirements (i.e. ownership concentration, holding periods, voting). The Validator Committee will serve an advisory function to ensure the Compliance Validator is enforcing the most up-to-date legislation at all times. STP Network allows assets the freedom to move across jurisdictions and platforms in a way that is fully compliant across jurisdictions and platforms.