New ERC-1404 Security Token Standard Could Spark STO Explosion

TokenSoft, a white label token sale platform that offers integrated custody solutions for ICOs, published an Ethereum Improvement Proposal that could establish an Ethereum-based security token standard, potentially allowing for the creation of an "STO explosion" to rival 2017's year of the ICO.I just published "ERC-1404: Simple Restricted Token Standard" https://t.

The security token offering is a solution to the regulatory impact of evolving token sale legality, providing startups and new blockchain ventures with the ability to offer investors a financial product that falls under securities regulation without violating securities laws.

Unlike a utility token, which can be used to represent access to a network or platform, or the ability to purchase goods and services from a network, security tokens represent either complete or fractional ownership in an asset.

Shares in a company, real estate or even intellectual property can be represented by a security token.

The benefits of security tokens aren't only applicable to the blockchain-based crowdfunding and ICO market, however.

Security tokens hold the potential to transform the traditional paper shares paradigm, enhancing efficiency and distribution.

The many applications of smart contracts, for example, can be used alongside security tokens to optimize voting in corporate governance, delivering increased transparency.

TokenSoft's ERC-1404 standard is designed specifically for tokenized securities and has been developed with guidance and insight from securities law firms, major cryptocurrency exchanges and issuers.

STO Standard Development Speeds Up. TokenSoft is not the only developer focused on creating regulatory compliant securities tokens.

The Security Token Standard initiative is an open source project that aims to create a similar backward-compatible extension of the ERC-20 standard, and recently concluded a roundtable event in July.