If 2017’s ICO boom was an illegal rave – wild and untamed, hella fun, but ultimately unsustainable – then the incoming STO wave is more of a swanky after-party. There’s still fun to be had and networking to be done, but there are bouncers on the door and it’s an invite-only affair. Despite these restrictions, security tokens still have the power to democratize investment and unlock innovative new financial products, just like conventional crypto assets.

“The short-term innovation is minimizing the investor amount,” opined Harbor’s Josh Stein. “From $500K to $10K. So the short-term effect is to add liquidity and lower check sizes.” As for the long-term, he speculated: “When you have real estate bonds, you can leverage them … get increased credit on them using Darma or multi collateral Dai. The innovation today is the liquidity, which quickly leads into smaller units, more investors participating.”

In the here and now, the prognosis on the STO ecosystem is bullish, with a number of big money deals between major industry players being inked. In the past week alone, we’ve seen:

Rhodium Capital Advisors, lift the lid on a $100M tokenized real estate fund using Harbor’s security token protocol and platform.
CF Capital Group, a resource mining advisory firm, unveil a $250M STO using a multi-jurisdictional protocol from Koreconx.
Polymath team up with Cardano and Ethereum co-founder Charles Hoskinson to create security token blockchain Polymesh.
There are other ways to issue securities, even within the cryptocurrency landscape, than through an STO, it should be noted. Kraken exchange, for example, has begun offering dividends to investors, with check sizes as small as $1,000 significantly lowering the barriers to entry.

Sourced through Scoop.it from: news.bitcoin.com