SmartLands initiates its inaugural Security Token Offering (STO) on Stellar

Smartlands, the FCA-backed security token platform under the Stellar blockchain has recently announced the initiation of its first Security Token Offering (STO). That comes after months of waiting for platform development and upgrades that would ensure that the venture would deliver on its promise.

According to Smartlands, the goal remains to provide a global platform where crowdfunding investors can participate in the issuance and sale of security tokens.

These security tokens represent a myriad of properties that Smartlands has tokenized to redefine the entire ownership experience.

The deal

The fine print of the STO indicates the type of initiative you can expect the deal to offer according to Smartlands; the STO will present tokens that are a representation of the tokenized property investment in Nottingham. The tokenized asset is listed as a student’s building complex within Nottingham.

As part of the deal also, Smartlands expects to begin with minimum investments in each category to initiate commitment from the subscribers. A limit of 25,000GBP tokens is available for private investors and corporations. On the other hand, the interested public have had the advantage of purchasing a token amount of 500GBP as an investment.

Smartlands further claims that the figures may vary in a forecast to its potential investors. The project is expected to receive an average dividend yield per annum plus capital growth.

In the announcement on the matter, Ilya Obraztov, Smartlands Tech VP, comments by saying.

“At Smartlands, we are rethinking the traditional finance models by building a global ecosystem that can democratize access to alternative investments and opens opportunities to higher-yield projects.”

He further adds,

“The student complex in Nottingham is the initial tokenized property within the UK, and would be followed with new offerings of blockchain-based securities backed by real estate and other markets.”

Besides, Smartlands also seeks to pursue the Multilateral Trading Facility (MTF) license to allow for trading of digitized stocks and equities. Such a permit would further certify the Smartlands platforms as a legit company that is ready to safeguard the customers’ interest payments, settlements, transactions, and dividend payouts.

Apart from wanting to operate as a complaint STO exchange, Smartlands continues to leverage the partnership they have with trading platforms holding the MTF licenses.

Once an STO entity receives this license form the UK Financial Conduct Authority (FCA), partners have the legal capacity to perform offerings, quotes, and compliance measures. Additionally, the offering is in line with Smartlands goal of providing a secondary market for the listing of the security tokens.

What this means

Right now, security tokens or STOs are emerging as an alternative that integrates financial investments and crypto technologies.

Already countries in Europe are in line with setting up a new frontier for tokenized investments. For example, the Estonia blockchain startup, DX exchange, shot into the limelight after its launch of tokenized ETFs and stocks. It also allows for eligible security tokens to apply for listing on the platform. However, DX Exchange requires all the tokenized securities to comply with ESMA’s guidelines and MiFID II rules.