Security Token Development: Digitize Assets, Raise Capital, Ensure Compliance
We build institutional-grade platforms for issuing, managing, and trading security tokens.
Unlock new liquidity and access a global investor pool with our expert-led, regulation-first approach.
Traditional capital markets are plagued by inefficiency, high costs, and barriers to entry that lock up trillions in illiquid assets. Security Token Offerings (STOs) are fundamentally changing this paradigm. By converting assets like real estate, private equity, or fine art into tradable digital tokens on a blockchain, STOs create unprecedented liquidity, automate compliance, and open investment opportunities to a global audience. This isn't just a new way to fundraise; it's a compliant, secure, and transparent evolution of capital markets. We build the robust, regulatory-aware platforms that make this transformation possible, turning your valuable assets into accessible, liquid investments.
Why Partner with Errna for Your STO?
Regulatory Navigation
Compliance isn't an afterthought; it's our starting point. We build platforms with integrated KYC/AML, investor accreditation, and reporting mechanisms tailored to global regulations like SEC exemptions (Reg D, S, A+), ensuring your offering is compliant from day one.
Institutional-Grade Security
Your assets and investor data are protected by multi-layered security architecture. From rigorously audited smart contracts to secure custody solutions and SOC 2 compliant processes, we mitigate risk at every level.
End-to-End Partnership
We're more than developers; we're your strategic partners. We guide you through the entire lifecycle: from initial tokenomics design and legal structuring to platform development, investor onboarding, and post-launch support.
Proven Expertise at Scale
With over 20 years in technology and a CMMI Level 5 appraisal, we have a verifiable track record of delivering complex, mission-critical enterprise solutions. We bring this disciplined approach to the world of digital assets.
AI-Powered Compliance
Leverage our AI-enabled solutions for automated transaction monitoring, investor verification, and regulatory reporting. This reduces manual overhead, enhances accuracy, and ensures ongoing compliance in a dynamic legal landscape.
Global Investor Access
Our platforms are engineered to handle a global investor base, supporting multiple currencies, languages, and jurisdictional requirements, dramatically expanding your capital-raising potential beyond traditional borders.
Strategic Liquidity Planning
A successful STO requires a plan for secondary trading. We help design your token for liquidity and facilitate integrations with licensed secondary trading platforms (ATS) to foster a healthy market for your investors.
Asset-Agnostic Platform
Our flexible architecture is designed to tokenize a wide range of asset classes. Whether it's real estate, private company equity, debt instruments, or investment funds, our platform can be tailored to your specific needs.
Transparent & Agile Process
We believe in a fully transparent development process with clear milestones and constant communication. Our agile methodology ensures we can adapt to your needs and deliver a market-ready product efficiently.
Our Comprehensive Security Token Development Services
We provide a complete suite of services to ensure every aspect of your Security Token Offering is expertly handled, from initial strategy to post-launch success.
End-to-End STO Platform Development
We build custom, white-label platforms that serve as the complete ecosystem for your security token offering. This is the core infrastructure that powers your fundraising, investor management, and compliance operations.
- Custom Issuance Portal: A branded, user-friendly interface for investors to register, complete KYC/AML, and purchase tokens.
- Administrator Dashboard: A powerful backend for you to manage the offering, monitor progress, approve investors, and access analytics.
- Secure Wallet Integration: Seamless integration with secure, multi-signature wallets for the custody and management of funds and tokens.
Asset Tokenization Services
We provide the technical and strategic framework to convert real-world assets into legally compliant digital tokens on the blockchain, unlocking their value and making them accessible to a broader market.
- Real Estate Tokenization: Fractionalize ownership of commercial or residential properties, enabling easier investment and liquidity.
- Equity & Debt Tokenization: Represent company shares or debt instruments as tokens, streamlining fundraising and shareholder management.
- Investment Fund Tokenization: Digitize shares of private equity, venture capital, or hedge funds to lower investment minimums and improve transferability.
Smart Contract Development & Audit
The smart contract is the digital heart of your STO, automating rules for issuance, trading, and compliance. We ensure it's flawless, secure, and aligned with your legal framework.
- Compliant Token Standards: Development using established standards like ERC-1400 or ERC-3643 to enforce transfer restrictions and other regulatory requirements.
- Automated Governance: Encoding of cap tables, dividend distribution, voting rights, and vesting schedules directly into the token.
- Third-Party Security Audits: A mandatory, rigorous auditing process to identify and eliminate vulnerabilities before deployment.
Regulatory Compliance Integration
We embed regulatory compliance directly into the technology, transforming legal requirements into automated, enforceable rules within your STO platform.
- Automated KYC/AML Workflows: Integration with leading identity verification providers to create a seamless and compliant investor onboarding process.
- Jurisdiction-Specific Rules Engine: Configure and enforce rules based on investor location, accreditation status, and the specific legal exemptions you are using.
- On-Chain Identity & Whitelisting: Management of an on-chain registry of approved investors, ensuring only eligible participants can hold or trade your tokens.
Investor Dashboard & Management
Empower your investors with a secure, transparent portal to manage their holdings and give your team the tools to efficiently manage investor relations and corporate actions.
- Personalized Investor Portfolios: A clear view for investors to see their token balance, transaction history, and relevant documentation.
- Corporate Actions Module: Tools to manage dividend payouts, shareholder voting, and automated reporting directly through the platform.
- Integrated Communication Hub: Securely communicate updates, reports, and announcements to your token holders.
Secondary Trading & Liquidity Solutions
A successful STO requires a clear path to liquidity. We architect your solution for seamless integration with secondary markets, providing investors with a viable exit strategy.
- ATS Integration Readiness: Building your platform and token to be compatible with licensed Alternative Trading Systems (ATS) for compliant secondary trading.
- Peer-to-Peer Trading Features: Development of bulletin board systems or direct P2P transfer capabilities within the platform's compliance framework.
- Partnerships with Liquidity Providers: Leveraging our network to connect you with market makers and exchanges that specialize in security tokens.
Our 6-Step STO Development Blueprint
We begin with a deep dive into your asset, business goals, and legal structure. Together, we define the token's economic model, governance, and compliance strategy to ensure a successful foundation.
Working alongside your legal counsel, we translate regulatory requirements into technical specifications. This includes selecting the appropriate legal exemptions and structuring the platform's KYC/AML and investor accreditation workflows.
Our expert developers build your custom issuance platform and the core smart contracts. We follow an agile methodology, providing you with regular updates and demos throughout the development cycle.
Before any code is deployed, it undergoes extensive internal testing and a mandatory third-party security audit. We identify and remediate any potential vulnerabilities to ensure the platform is secure and robust.
We manage the technical launch of your STO platform, ensuring a smooth and secure go-live. We provide support during the critical investor onboarding and fundraising period to address any technical issues promptly.
Our partnership continues after the sale. We provide ongoing platform maintenance, security updates, and support for corporate actions. We also help you plan for the next phase, including secondary market integration and future offerings.
Technology Stack & Compliance Tools
We build on a foundation of proven, secure, and scalable technologies to create institutional-grade security token platforms.
STO vs. Traditional Fundraising
Understand the key advantages of launching a Security Token Offering compared to conventional methods like Venture Capital or an Initial Public Offering (IPO).
| Feature | Security Token Offering (STO) | Traditional Fundraising (VC/IPO) |
|---|---|---|
| Investor Access | Global, 24/7 access for accredited and sometimes retail investors. | Limited to specific geographic regions and exclusive investor networks. |
| Liquidity | Potential for early liquidity through secondary trading on licensed platforms (ATS). | Highly illiquid for years until a major exit event (M&A or IPO). |
| Transaction Costs | Lower costs due to fewer intermediaries and automated processes. | High fees for investment bankers, lawyers, and brokers. |
| Settlement Time | Near-instant settlement (T+0) via blockchain. | Slow, manual settlement processes (T+2 or longer). |
| Transparency | High transparency with an immutable ledger of ownership (cap table). | Opaque processes with fragmented and private record-keeping. |
| Compliance | Automated and programmable compliance embedded in the token's smart contract. | Manual, labor-intensive, and costly compliance and reporting processes. |
Success Stories in Asset Tokenization
Tokenizing a $50M Commercial Real Estate Portfolio
Client Overview: A mid-sized real estate investment trust (REIT) wanted to unlock liquidity from its portfolio of commercial properties and lower the barrier to entry for smaller accredited investors. They needed a compliant way to offer fractional ownership without the high overhead of traditional syndication.
Key Challenges:
- Ensuring strict adherence to SEC regulations for real estate securities.
- Managing a large number of smaller investors and automating dividend distributions.
- Creating a trustworthy platform to attract investors unfamiliar with digital assets.
- Providing a clear path to future liquidity for the token holders.
"Errna didn't just build a platform; they engineered a compliant capital-raising machine. The process was transparent, and their expertise in both blockchain and financial regulations was invaluable. We've opened up our fund to a whole new class of investors."
Positive Outcomes
Series A Fundraising via an Equity Token STO
Client Overview: A promising FinTech startup with a validated product needed to raise $10M for its Series A round. They chose an STO to access a broader, global pool of accredited investors and to create a more dynamic and transparent cap table from the start.
Key Challenges:
- Structuring a digital security that accurately represented company equity.
- Building a secure and intuitive platform for a tech-savvy but crypto-diverse investor base.
- Navigating the complexities of Reg D filings for a tokenized offering.
- Automating vesting schedules and shareholder rights within the smart contract.
"The STO allowed us to bypass the traditional, gatekept VC world and connect directly with investors who believe in our vision. Errna's platform was robust, secure, and made the entire process manageable for our lean team."
Positive Outcomes
Fractionalizing a Private Equity Growth Fund
Client Overview: An established private equity firm sought to innovate by offering a tokenized feeder fund. Their goal was to attract a new generation of accredited investors by lowering the typically high investment minimums and providing a mechanism for potential future liquidity before the fund's 10-year lock-up period ended.
Key Challenges:
- Integrating with their existing fund administration and reporting systems.
- Creating a token structure that complied with complex fund regulations.
- Ensuring institutional-grade security and privacy for high-net-worth investors.
- Educating their traditional investor base about the benefits of tokenization.
"Tokenization was a strategic move for us, and Errna was the right technology partner. They understood the nuances of fund structures and delivered a platform that met our rigorous standards for security and compliance. It has set us apart from our competitors."
Positive Outcomes
What Our Clients Say
Errna's team is exceptional. They handled the immense complexity of our multi-jurisdictional STO with professionalism and deep technical skill. Their platform is the bedrock of our digital asset strategy.
The security audit they conducted on our smart contracts was incredibly thorough. They identified potential issues we hadn't considered, saving us from significant risk down the line. True professionals.
As a real estate developer, the concept of tokenization was new to us. Errna guided us through every step, from legal considerations to marketing. They made a complex process feel straightforward and achievable.
The investor dashboard they developed is fantastic. It's intuitive, provides all the necessary information transparently, and has significantly reduced the time our team spends on investor relations.
We needed a highly custom solution to tokenize our unique asset class. Errna's team didn't just offer a template; they listened to our needs and built a bespoke platform that perfectly fits our business model.
Their AI-powered compliance monitoring is a game-changer. It gives us peace of mind knowing that our platform is continuously tracking transactions and flagging potential issues, keeping us ahead of regulatory demands.
Frequently Asked Questions
An STO is a process of issuing digital tokens on a blockchain that represent ownership in a real-world asset, such as company equity, real estate, or an investment fund. Unlike ICOs, these tokens are classified as securities and must comply with government regulations, offering investors greater protection and legal clarity.
The primary difference is legal status. ICOs often issue "utility tokens," which represent access to a product or service. STOs issue "security tokens," which are financial instruments backed by tangible assets or profits and are subject to securities laws. This makes STOs a more regulated and secure investment vehicle.
A wide variety of assets can be tokenized, especially those that are traditionally illiquid. Common examples include: private company equity, commercial and residential real estate, venture capital and private equity funds, debt instruments like bonds and loans, and high-value collectibles like fine art or classic cars.
The timeline can vary significantly based on the complexity of the asset, the legal structuring required, and the scope of the technology platform. A typical STO launch can take anywhere from 4 to 9 months, encompassing legal preparation, platform development, security audits, and marketing.
The key benefits include:
- Increased Liquidity: Makes traditionally illiquid assets tradable on secondary markets.
- Global Capital Access: Reaches a worldwide pool of investors beyond local networks.
- Lower Costs: Reduces reliance on expensive intermediaries like investment banks.
- Automated Compliance: Embeds regulatory rules directly into the smart contract.
- Enhanced Transparency: Provides an immutable record of ownership and transactions on the blockchain.
While we are technology and compliance experts, we are not a law firm. We work closely with your chosen legal counsel to translate their legal advice and opinions into a robust, compliant technical solution. We also have a network of experienced blockchain-focused law firms that we can recommend to our clients.
Ready to Unlock the Future of Your Assets?
Let's discuss how our Security Token Development services can help you access new capital, enhance liquidity, and streamline your investment processes. Schedule a complimentary, no-obligation consultation with our STO experts today.
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