Security Token Development: Digitize Assets, Not Just Ambitions
Launch a fully compliant Security Token Offering (STO) that unlocks global capital, enhances liquidity, and transforms real-world assets into tradable digital securities.
We build the secure, regulatory-adherent bridge between traditional finance and the future of investment.
From Illiquid to Investable: The STO Revolution
Security Token Offerings (STOs) are fundamentally changing the landscape of capital markets. Unlike ICOs, STOs represent a regulated convergence of traditional finance and blockchain technology, offering a secure and compliant way to issue digital securities backed by real-world assets like equity, debt, or real estate. This process, known as asset tokenization, unlocks immense value by converting traditionally illiquid assets into fractional, tradable digital tokens.
For businesses, this means access to a global pool of accredited investors, lower issuance costs, and automated compliance. For investors, it offers unprecedented access to private market opportunities with enhanced liquidity and transparency. At Errna, we provide the expert guidance and robust technology to navigate this complex ecosystem, ensuring your STO is not just a fundraising event, but a strategic entry into the future of finance.
Unlock Your Asset's Potential
Why Partner with Errna for Your STO?
Launching a successful STO requires more than just technology. It demands a partner with deep expertise in finance, regulation, and blockchain. Here’s why industry leaders choose us.
Regulatory Compliance First
We build your STO platform with compliance at its core, integrating KYC/AML verification, investor accreditation, and adherence to securities laws like Reg D/S/A+ to ensure a legally sound offering.
Institutional-Grade Security
Your assets and investor data are protected by multi-layered security protocols, rigorous smart contract audits, and secure wallet infrastructure, backed by our SOC 2 and ISO 27001 certifications.
End-to-End Technical Expertise
From tokenomics design and smart contract development to issuance platform creation and exchange listing support, our in-house team of 1000+ experts manages the entire STO lifecycle.
Designed for Liquidity
We engineer tokens and platforms compatible with leading security token exchanges and liquidity providers, incorporating features that encourage secondary market trading from day one.
Custom Tokenization Strategy
We don't offer one-size-fits-all solutions. We work with you to model the tokenomics, governance, and features that align perfectly with your asset class and business objectives.
Global Investor Access
Our platforms are built to handle global investors, supporting multiple currencies and jurisdictions while automating compliance checks for a seamless and scalable fundraising process.
Full IP Ownership & Control
Unlike SaaS platforms that lock you in, our custom development model ensures you own the intellectual property, giving you full control over your technology stack and future roadmap.
Proven Track Record Since 2003
With over two decades in enterprise software development and a CMMI Level 5 process maturity, we bring a legacy of reliability and excellence to the cutting-edge world of digital assets.
Lifecycle Support & Maintenance
Our partnership extends beyond launch. We provide ongoing platform maintenance, security updates, and technical support to ensure the long-term success of your digital security ecosystem.
Our Comprehensive Security Token Development Services
We provide a complete suite of services to guide you from initial concept to a successful, globally recognized Security Token Offering and beyond.
STO Strategy & Tokenomics Design
A successful STO starts with a robust strategy. We help you define the 'why' and 'how' of your tokenization project, creating a blueprint for value creation and regulatory compliance that aligns with your long-term business goals.
- Asset Feasibility Analysis: We evaluate your target asset (e.g., equity, real estate, debt) to determine its suitability for tokenization and identify key value drivers.
- Tokenomics Modeling: Our experts design the economic model of your token, including supply, distribution, dividend rights, voting rights, and mechanisms to drive value.
- Regulatory Pathway Consulting: We help you navigate the complex web of securities laws, identifying the optimal regulatory framework (e.g., Reg D, Reg S) for your offering and target investor base.
Asset Tokenization & Smart Contract Development
This is where your asset becomes a digital security. We develop secure, programmable smart contracts that embed the rights, restrictions, and logic of your asset directly onto the blockchain, ensuring automated and transparent enforcement.
- Security Token Creation: We code and deploy tokens on leading blockchain standards like ERC-1400 or ERC-3643, which are specifically designed for securities with features for identity, transfer restrictions, and compliance.
- Smart Contract Auditing: An independent, rigorous audit of your smart contract code is conducted to identify and eliminate vulnerabilities, ensuring the integrity and security of your digital assets.
- Cap Table & Governance Logic: We programmatically embed your capitalization table, vesting schedules, and corporate governance rules into the smart contract for automated management.
STO Issuance Platform Development
Your issuance platform is the gateway for your investors. We build a custom, secure, and user-friendly portal that manages the entire fundraising process, from investor onboarding to token distribution, all under your brand.
- Investor Dashboard: A comprehensive portal for investors to register, complete KYC/AML, view offering documents, invest funds, and manage their token portfolio.
- Admin & Issuer Portal: A powerful backend for you to manage the offering, monitor fundraising progress, verify investors, and communicate with stakeholders.
- Multi-Currency Payment Gateway: We integrate secure payment processing for both fiat (USD, EUR) and major cryptocurrencies (BTC, ETH), broadening your investor reach.
Compliance & Identity Management Integration
Automating regulatory compliance is a key advantage of STOs. We integrate best-in-class solutions to ensure every transaction and investor interaction meets strict legal and identity verification standards, globally and 24/7.
- KYC/AML/CFT Integration: We seamlessly connect your platform with leading identity verification providers to automate Know Your Customer, Anti-Money Laundering, and Counter-Financing of Terrorism checks.
- Accredited Investor Verification: Our system automates the process of verifying that investors meet the required financial criteria for your specific securities exemption.
- On-Chain Compliance & Transfer Rules: We embed regulatory rules directly into the token's smart contract, automatically preventing unauthorized trades and ensuring compliance on secondary markets.
Post-STO Services & Liquidity Solutions
The launch is just the beginning. We provide the essential post-offering support to ensure your token thrives, focusing on corporate actions, investor relations, and enabling secondary market liquidity.
- Security Token Exchange Listing Support: We assist with the technical and compliance requirements for listing your token on regulated Alternative Trading Systems (ATS) and security token exchanges.
- Corporate Actions Management: Our platforms facilitate automated dividend/interest payments, stock splits, and shareholder voting directly through the blockchain.
- Investor Relations & Reporting Tools: We provide tools for secure communication with your token holders and generating compliance reports for regulatory bodies.
Our Proven STO Development Process
We follow a structured, transparent, and agile methodology to ensure your project is delivered on time, within budget, and to the highest standards of quality and compliance.
1. Discovery & Strategy
We begin with in-depth workshops to understand your asset, business goals, and legal requirements. This phase culminates in a comprehensive strategy document, tokenomics model, and technical roadmap.
2. Legal & Compliance Framework
Working alongside your legal counsel, we establish the regulatory framework, select the appropriate securities exemption, and define the compliance logic that will be embedded in the technology.
3. Platform & Smart Contract Development
Our agile development teams build your issuance platform and code the security token's smart contracts in parallel sprints. You get regular demos and opportunities to provide feedback.
4. Security Auditing & QA
Rigorous testing is paramount. We conduct comprehensive quality assurance and engage third-party auditors to perform a full security audit of the smart contracts and platform architecture.
5. Deployment & Launch
Once audited and approved, we deploy the smart contracts to the blockchain and launch the issuance platform. Our team provides full support during the go-live fundraising period.
6. Post-Launch Support
Our engagement continues with ongoing maintenance, security monitoring, and technical assistance for exchange listings and corporate actions, ensuring the long-term health of your token ecosystem.
Success Stories in Asset Tokenization
See how we've helped businesses across various sectors unlock value and streamline investments through our custom security token solutions.
Tokenizing a $50M Commercial Real Estate Portfolio
Industry: Real Estate Investment
Client Overview: A mid-sized real estate investment trust (REIT) wanted to increase liquidity for its portfolio of commercial properties and open up investment to a wider pool of accredited investors. They were hampered by the high minimum investment thresholds and long lock-up periods typical of traditional real estate funds.
"Errna didn't just build a platform; they engineered a new investment vehicle for us. The process was seamless, compliant, and has fundamentally changed how we approach capital formation." - Sarah Chen, Managing Partner, Apex Real Estate Capital
The Problem
The client's primary challenge was the illiquidity of their assets. Selling fractional ownership in commercial buildings was a paper-intensive, costly, and slow process, limiting their investor base and tying up capital for years.
Key Challenges:
- Creating fractional ownership for indivisible assets.
- Automating compliance for investor accreditation and property rights.
- Reducing administrative overhead for managing hundreds of smaller investors.
- Providing a mechanism for secondary trading.
Our Solution
We developed a comprehensive STO platform that tokenized ownership of their real estate portfolio. Each token represented a share of the fund, with all ownership rights and dividend logic encoded in a smart contract.
- Built an issuance portal for investor onboarding and investment under SEC Reg D.
- Developed an ERC-1400 security token to represent fractional ownership.
- Integrated automated KYC/AML and accredited investor verification.
- Created an admin dashboard for the client to manage assets and investor communications.
Series B Fundraising via a Security Token Offering
Industry: Technology (SaaS)
Client Overview: A high-growth SaaS company was looking for a more efficient way to raise its $20M Series B round. They wanted to avoid the high fees and dilution associated with traditional venture capital and provide liquidity options for early employees and investors.
"The STO allowed us to access a global network of investors and give our early team members a path to liquidity. Errna's technical and regulatory expertise was invaluable." - David Lee, CEO, InnovateCo
The Problem
The traditional VC fundraising process was slow and geographically limited. Furthermore, managing their cap table was becoming increasingly complex, and they had no efficient way to allow early stakeholders to sell a portion of their vested shares.
Key Challenges:
- Digitizing and managing a complex cap table with multiple share classes.
- Ensuring compliance with securities laws for equity issuance.
- Reaching a diverse, global pool of accredited tech investors.
- Creating a compliant framework for future employee stock option liquidity.
Our Solution
We engineered a solution to issue tokenized equity representing Series B preferred stock. The platform managed the entire fundraising process and provided a foundation for future secondary transactions.
- Developed a security token representing direct equity ownership.
- Built a custom cap table management tool on the blockchain.
- Integrated with investor verification services for global compliance.
- Programmed vesting schedules and transfer restrictions directly into the token.
Digital Feeder Fund for a Private Equity Firm
Industry: Private Equity
Client Overview: A boutique private equity firm aimed to democratize access to its top-performing fund, which traditionally required a $1 million minimum investment. Their goal was to create a digital feeder fund to attract a larger number of smaller, accredited investors.
"Errna helped us launch a digital version of our flagship fund, dramatically lowering our minimum ticket size and streamlining our operations. They are true pioneers in this space." - Michael Vance, Founder, Horizon PE Partners
The Problem
The firm's high minimum investment size excluded a large segment of the accredited investor market. The manual, paper-based subscription process was inefficient and created a high administrative burden for both the firm and its investors.
Key Challenges:
- Lowering the investment minimum without increasing administrative costs.
- Automating capital calls and distributions.
- Ensuring strict adherence to fund governance and reporting requirements.
- Providing investors with better transparency into fund performance.
Our Solution
We created a tokenized feeder fund where each token represented a limited partnership (LP) interest. The platform automated the entire investor lifecycle, from subscription to distributions.
- Designed a token structure to mirror the fund's legal and economic terms.
- Built a secure investor portal for digital subscriptions and reporting.
- Automated capital calls and dividend distributions via smart contracts.
- Provided an immutable audit trail of all fund transactions on the blockchain.
Industries We Empower with Asset Tokenization
Our security token development services are adaptable across numerous sectors, unlocking liquidity and creating new investment models for a wide range of assets.
Real Estate
Private Equity & VC
Startups & Growth Equity
Debt & Lending
Precious Metals & Commodities
Fine Art & Collectibles
Energy & Infrastructure Projects
Intellectual Property & Royalties
Technology Stack & Compliance Frameworks
We build on proven, secure, and scalable technologies to create robust and compliant digital asset platforms.
What Our Clients Say
We're proud to be the trusted technology partner for innovators in the digital asset space.
The regulatory complexity of an STO was our biggest fear. Errna's team, with their deep understanding of both blockchain and financial regulations, made the entire process manageable and secure. Their expertise was a game-changer.
We needed a highly custom tokenization platform for our unique asset class. Errna delivered a solution that was not only technically brilliant but also perfectly aligned with our business logic. Their attention to detail is unmatched.
Security was non-negotiable for us. The thoroughness of Errna's smart contract audits and their commitment to building a secure issuance platform gave us and our investors complete peace of mind.
Meet Our Security Token Experts
Our team combines decades of experience in enterprise software, financial markets, and blockchain technology.
Flexible Engagement Models
We offer adaptable engagement models to suit your project's specific needs, budget, and timeline.
Fixed-Price Project
Ideal for projects with well-defined scopes and requirements. We provide a detailed proposal with a fixed price and timeline, ensuring budget predictability for your STO launch.
Dedicated Development Team
For complex, long-term projects, we provide a dedicated team of STO experts who act as an extension of your in-house team, offering maximum flexibility and control over the development process.
Time & Materials
Best suited for projects with evolving requirements. This model offers the flexibility to adapt the project scope and features as you progress, paying only for the time and resources utilized.
Frequently Asked Questions
Your questions about Security Token Offerings, answered.
The primary difference is regulation. An Initial Coin Offering (ICO) often involves selling "utility tokens," which may not be subject to securities laws. A Security Token Offering (STO) is an explicit offering of a security—a token that represents an investment contract like equity, debt, or a share of revenue. STOs are fully regulated and must comply with securities laws, offering investors greater protection and legal clarity.
While several blockchains can support security tokens, Ethereum remains the most popular choice due to its mature ecosystem, extensive developer tools, and established token standards (like ERC-1400). However, other platforms like Polygon, Tezos, or private blockchains like Hyperledger Fabric can also be suitable depending on specific requirements for transaction speed, cost, and privacy. We help you choose the best protocol for your specific use case.
The timeline for an STO can vary significantly based on project complexity, legal requirements, and the readiness of the asset to be tokenized. A typical timeline ranges from 4 to 9 months. This includes strategy and legal structuring (1-2 months), technology development and auditing (2-4 months), and the fundraising/offering period (1-3 months).
The main legal consideration is adherence to securities laws in the jurisdictions where you plan to offer tokens. In the U.S., this means registering the offering with the SEC or using an exemption like Regulation D, S, A+, or CF. Other key considerations include implementing robust KYC/AML procedures, ensuring investor accreditation, and programming transfer restrictions into the token to maintain compliance.
Liquidity for security tokens is achieved through listing on regulated secondary trading platforms, often called Alternative Trading Systems (ATS) in the U.S. These platforms are licensed to facilitate the trading of digital securities among verified investors. We design tokens to be compatible with these platforms and can assist with the technical aspects of the listing process.
Ready to Build the Future of Finance?
Let's discuss how we can transform your assets into secure, liquid, and globally accessible digital securities. Schedule a free, no-obligation consultation with our STO experts today.
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