A security token is a digital representation of ownership of any asset traditionally categorized as a “private security.” It can represent shares in a company, real estate, an art collection, and even an interest in an investment fund. In its simplest terms, the process of “tokenizing” an asset essentially converts proof of ownership on paper by using blockchain technology to generate a security token uniquely coded to enable the owner to digitally track their tokenized asset.
Security tokens are on pace to become the first type of digital-asset to bridge the gap between established institutional investors and the new world of digital ledger technology (DLT). Part of the magic of security tokens is that, at least conceptually, they can be seen as programmable, globally tradeable representations of existing financial products. As the security token space evolves, we are likely to see more tokenized securities take the form of established financial vehicles such as bonds, debentures, derivatives and stocks.
However, for that to happen, the existing generation of security token protocols needs to incorporate some of the underlying mechanics that remain at the epicenter of traditional financial assets. Part of that core foundation relies heavily on legal compliance, both domestically and globally.
So what are the benefits of tokenizing securities through blockchain technology? Lower Fees. Faster deal execution. Free market exposure. Larger investor base. Automated service functions. Lack of financial institution manipulation.
The Petros Law Group focuses on commercial implementation of digital asset technologies and representing global innovators in blockchain seeking to raise venture capital, build corporate infrastructure, and efficiently bring their blockchain-based products to market.
Through comprehensive legal representation and ongoing regulatory compliance, the Firm is dedicated to helping clients navigate the complex and uncertain regulatory landscapes governing Security Token Offerings, Initial Coin Offerings and other business activities regulated by agencies such as the SEC, CFTC, IRS, FINRA, and FinCEN.
Located in Manhattan's Flatiron District, the Petros Law Group also counsels businesses that operate in traditional marketplaces- such as commercial real estate developers and consumer merchants- who wish to integrate a digital securitized asset asset model into their current infrastructure.
Diligence is vital when building the necessary architectural frameworks required by any business seeking to benefit from the utilization of blockchain technology. The Petros Law Group places a strong emphasis on exploring all avenues of opportunity while mitigating any potential risks that may occur along the way, from inception to fruition.
Petros Law Group provides clients with services narrowly-tailored for each Initial Coin Offering or Blockchain-based project with the goal of avoiding any legal issues that may compromise the Project in its entirety.
"Cryptocurrency law reform is no longer moving at a glacial pace. The techprenuers and blockchain enthusiasts who make this digital-asset class special, are now vulnerable to shifting legislative enforcement. The help and guidance of qualified legal counsel is essential to mitigating potential risks that can eviscerate a blockchain project before its innovation can be shown to the world."