Token Tower is a company focused on tokenization and blockchain consulting. One of the strongest blockchain use cases we have seen to date is security tokenization, and this technology has been much-hyped for the past years. But nowadays, we see a great movment demanding solid results from tokenizing technology. Together with HTMLBunker in a solid partnership, Token Tower is up to build your project, whitepaper, marketing strategies and everything you need to join this promissing market.
Some use cases that tokenization can help your business:
Escrow: The escrow process is mainly manual and requires a lot of work to be undertaken before funds can be released. The criteria under which funds have been held need to be researched and validated, which can lead to issues around the transparency of escrow echanges. A blockchain could write the escrow criteria into a smart contract. This would ensure that funds are automatically released when these criteria are validated. This would greatly speed up the process of releasing funds. Due to the immutable and open nature of a blockchain, it would also aid greatly in tacking the transparency issue.
Crowdfunding: Crowdfunding is currently a service that is not offered by many financial institutions due to the difficulty in managing the value exchange written in the contract. Accountability is also a concern when dealing with large scale crowdfunding. A blockchain based platform could facilitate a crowdfunding network. Given a blockchain's capacity to allow for a large number of users, it would be a perfect fit. Also given the open nature of a distributed ledger, this would greatly aid in transparancy of the transaction for all parties.
Lending: A blockchain based lending platform would provide people with an avenue to lend money based on their risk profile. This would be a better alternative than current peer to peer lending platforms as the smart contract would ensure he gets his return on a predetermined.
Single Customer View: In the current market, few financial services companies have a clear view of each of their customers. This becomes a challenge as valuable customer data and insights have to be manually gathered and a seamless customer experience is difficult to deliver on. In addition neither the customer or the regulator have a clear view. A blockchain platform would have the potential to show a single customer view for all relevant parties. Due to it's real time, immutable nature, a blockchain could provide a customer view which could greatly aid both the customer relationship manager and the regulator.
Loyalty Programme: A maor flaw with loyalty programmes is that the data is stored in a number of different silos. A maor flaw with loyalty programmes is that the data is stored in a number of different silos. As a result, many customers don't receive the rewards which they deserve, which sometimes leads to a lower transaction rate. A loyalty system underpinned by a blockchain could alleviate these problems. The information in these silos could feed into a blockchain, which would create a simple view of a customer. This view would be in real time therefore it would give the customer a clear view of how much more activity would warrant a bonus. This could increase their usage and provide an incentive to do more business. A blockchain loyalty programme could remove the friction in the above situation. By writing the rules into a smart contract, it would ensure that Alan is paid immediately when he reaches the threshold. It would also provide a clear view of his customer behaviours meaning product could be tailored to fit his needs.
Regulatory Reporting: Regulatory reporting in financial institutions is currently a key operational challenge. The level of data mainpulation takes a lot of effort for the organisation, and is prone to errors. A blockchain reporting solution could provide the ansver to these challenges. Coupled with analytics to cleanse the data, the different systems could feed into one blockchain. This blockchain would be an immutable data store, which has the potential to produce reports written into a rules engine in a smart contract.
Smart Identity: The process of KYC is an onerous one for both financial institutions and their investors. For example, when investing in two different funds, there is an obligation to provide what is in most cases the same information. This duplication is a major pain point for all stakeholders. A blockchain solution would provide a platform which stores all information relating to an investor. The information would be encrypted and immutable. There is also the oppotunity to involve trusted third parties (e.g. passport office) to validate KYC information, making it a more realistic offering. This will aid in reducing duplication and in preventing fraud.
Asset Tracking: The tracking of assets is a major issue for some financial services companies as there is currently no digital system to track goods such as fine artworks or aeroplane parts. Given a blockchain's ability to provide an immutable history of all transactions relating to an asset, the potential to track assets on a blockchain is apparent. A simple ledger could be utilised by key stakeholders such as insurance companies, asset managers and buyers.
More services offered:
Select jurisdiction: We help to structure STO in the jurisdictions with developed financial markets and regulatory advancements like the US and the EU.
Select financial instrument for offering: The security token will be backed by the financial instrument we will offer to investors (equity, debt). The instrument has to meet the business requirements and investor’s investment expectations.
Set up STO structure and providing compliance support: Securities offering can be made via public offering, private placement or under registration exemption. The easiest and the most affordable way for STO is to offer security tokens to institutional investors. In this case, the issuer will not fall under most complicated regulatory requirements.
Prepare private placement memorandum/prospectus: Depending on the type of offering it may require preparation of memorandums for a private placement or full prospectus for a public offering. These documents, to varying degrees, outline basic information the investor might look for: the issuer’s and business information, type of security tokens offered, resale restrictions (if any), etc.
File with securities and financial regulators: STO may require filling out and filing necessary forms and documents with regulatory bodies.
Develop compliant smart contract and generate a security token: Each smart contract involved in STO has to be in a line with all regulatory requirements. They will outline the investor’s rights and token details, issuance order, and circulation rules, automate dividends distribution. Investors will receive legally compliant security tokens.
Create investor’s dashboard: User-friendly interface will facilitate the investment process and assist each investor during the security token acquisition, in verification procedures and further resales of the tokens.
Verify investors: During the verification process, the investor’s eligibility will be proven. Verification is needed to comply with anti-money laundering laws as well. This ensures issuer’s safety. In some cases, security token resales can require the purchaser’s verification.
List on HTMLBunker exchange: One of the most expensive goals for a token is to reach great volume exchanges. HTMLBunker is opened for every selected token created under Toker Tower seal.
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