About Security Tokens
A security token represents a tangible asset that a company has to offer to its investors. Companies that perform a Security Token Offering offer investors a share or the right to a profit share in their business. Security tokens offer the investors with real and transferable rights to their investment and that makes it a safe and reliable investment tool. A security token also gives growing companies a profitable and secure way to raise capital. Security tokens have the potential to offer investors the security of a regulated instrument combining agility and the speed of blockchain. Moreover, keeping the benefits of security tokens in mind, many corporate giants have built platforms to trade security tokens and provide institutional investors with an easy and secure way to start investing in blockchain technology.
Attributes | Details |
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Study Period | 2017-2027 |
Base Year | 2021 |
Unit | Value (USD Million) |
Analyst at AMA Research estimates that United States Players will contribute the maximum growth to Global Security Tokens market throughout the forecasted period. Established and emerging Players should take a closer view at their existing organizations and reinvent traditional business and operating models to adapt to the future.
Tokensoft (United States), tZERO Group, INC. (United States), Polymath (United States), Open Finance (United States), Harbor (United States), Securrency (United States), Securitize, Inc. (United States), Blockchain Capital (BCAP) (United States), 22X Fund (United States) and Autradety (Netherlands) are some of the key players that are part of study coverage. Additionally, the Players which are also part of the research coverage are Chaineum (France), Lykke (Switzerland), Holdex (Hong Kong) and SPICE VC (Israel).
Segmentation Overview
AMA Research has segmented the market of Global Security Tokens market by Type (Equity Tokens, Debt Tokens, Asset Tokens and Legally Compliant Tokens) and Region.
On the basis of geography, the market of Security Tokens has been segmented into South America (Brazil, Argentina, Rest of South America), Asia Pacific (China, Japan, India, South Korea, Taiwan, Australia, Rest of Asia-Pacific), Europe (Germany, France, Italy, United Kingdom, Netherlands, Rest of Europe), MEA (Middle East, Africa), North America (United States, Canada, Mexico). If we see Market by STO Ecosystem, the sub-segment i.e. Issuance Platform will boost the Security Tokens market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth. If we see Market by Industry Verticals, the sub-segment i.e. Financial Services will boost the Security Tokens market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth.
Influencing Trend:
Mass Adoption of the Blockchain Technology and The Popularity of Utility Tokens Has Decreased In Favour Of Security Tokens
Market Growth Drivers:
Security Tokens Offer the Speed and Ease of Blockchain without Sacrificing Strong Legal Protection, The Rise in Financial Investments Worldwide Has Fueled the Demand and The Rising Demand for Security Tokens As it Offers Protection against Fraud and Misselling
Challenges:
The Lack of Advanced Financial Instruments
Restraints:
Security Tokens Are Much More Heavily Regulated By the Government
Opportunities:
An Emergence of Next Generation of Security Token Protocols and The High Demand from Emerging Economies
Market Leaders and their expansionary development strategies
On 23 Jan. 2019, Vstock Transfer, a leading transfer agent and registrar firm that services private issuers, IPOs, registration exempt and Regulation A transactions, has expanded its suite of custody solutions for Vtoken's issuer clients looking to conduct either a registered or exempt Security Token Offering (STO). and On 10 April 2019, SWARM announced that it will bring security tokens to the TRON blockchain. Individuals and enterprises can issue tokenized assets through the SWARM platform on the Ethereum, Stellar, and now Tron blockchains.
On 8 Aug 2019, tZERO Announced to Open Security Token Market to Retail Traders. and On 15 Sept 2019, SPiCE VC, a venture capital firm, has announced that its security token will be trading on the OpenFinance Network (OFN). It will be one of the first security tokens ever to be traded on a regulated trading platform in the United States.
According to the Federal Securities Law, none company can issue or sell security tokens without the previous registration in the SEC, unless the offering falls under another exemption from registration.
Key Target Audience
Security Tokens Key Companies, Private Equities, Regulatory Bodies, Government Bodies, Downstream Vendors, End Users and Others
About Approach
To evaluate and validate the market size various sources including primary and secondary analysis is utilized. AMA Research follows regulatory standards such as NAICS/SIC/ICB/TRCB, to have a better understanding of the market. The market study is conducted on basis of more than 200 companies dealing in the market regional as well as global areas with the purpose to understand the companies positioning regarding the market value, volume, and their market share for regional as well as global.
Further to bring relevance specific to any niche market we set and apply a number of criteria like Geographic Footprints, Regional Segments of Revenue, Operational Centres, etc. The next step is to finalize a team (In-House + Data Agencies) who then starts collecting C & D level executives and profiles, Industry experts, Opinion leaders, etc., and work towards appointment generation.
The primary research is performed by taking the interviews of executives of various companies dealing in the market as well as using the survey reports, research institute, and latest research reports. Meanwhile, the analyst team keeps preparing a set of questionnaires, and after getting the appointee list; the target audience is then tapped and segregated with various mediums and channels that are feasible for making connections that including email communication, telephonic, skype, LinkedIn Group & InMail, Community Forums, Community Forums, open Survey, SurveyMonkey, etc.