Security Token Offering (STO) platform

About This Project

Tokenization of assets

 

Introduction

From art to buildings, the way we invest in asset could be about to fundamentally change with the arrival of tokenization. The act of tokenizing asset threatens to disrupt many industries, in particular the financial industry. Those who are not prepared risk to be left behind. – Deloitte: “The tokenization of assets is disrupting the financial industry”

 

The tokenization of assets refers to the process of issuing a blockchain token (specifically, a security token) that digitally represents a real tradable asset—in many ways similar to the traditional process of securitization, with a modern twist. These security tokens are created through a type of initial coin offering (ICO) sometimes referred to as a security token offering (STO) to distinguish it from other types of ICOs, which can produce different tokens such as equity, utility, or payment tokens. An STO can be used to create a digital representation—a security token—of an asset, meaning that a security token could represent a share in a company, ownership of a piece of real estate, or participation in an investment fund. These security tokens can then be traded on a secondary market.

 

A new “token economy” offers the potential for a more efficient and fair financial world by greatly reducing the friction involved
in the creation, buying, and selling of securities:

 

  • Greater liquidity
  •  Faster and cheaper transactions
  • More transparency
  • More accessibility

The concept of asset tokenization is one of the main blockchain applications and the company investigated developing and selling this concept. Apart from company “tokens” or shares, it would also make it possible to buy and sell shares of real estate, art, and other assets. This project was an mvp and in the market research stage to see if this was a viable business case for us.

 

Research and structuring

Off course, at the beginning of every process, you start with researching who the users are (will be) and start structuring the application. As the main users would be Bank or asset management employees, and they would practice partial information gathering over a number of days/weeks, it was important that we created a process that was completable in one go, as well as being saveable and have the possibility to add information at any point in time to any part of the process. This means it’s built as a non-sequential flow. You could save the draft of your asset token issuance and continue with it at a later stage. This is perfect for issuers (the users of this platform) gathering all the necessary information from the holders of the security. These parties may or may not be together completing the process, which makes this a rather important feature.

 

Process maps

First step was investigating structure and features, as well as doing some rough wireframing.

Below is an example of the signing process research structure.

 

 

Rough sketches

Some initial sketches I created to start shaping the product

 

Wireframing the solution

After completing the research phase, where we interviewed potential clients about what they actually expected of this solution we came to a more definite vision for our product, and we could start bringing it to life through wireframes.

Below are some of the wireframes where we were trying out some features and ideas, like for example integrating 3rd party providers for certain legally required steps in the issuance of an asset token.

 

First step was creating the wireframes:

Creating the design

After creating the wireframes it was time to go deeper into design. We wanted a light and professional interface with very clear fields. By utilising a step by step process with a clear progress bar it was easier for the users to keep track of their progress.

 

Overview page

The overview page is the main page for the “token issuer”, the bank or wealth manager. Here, the “token issuer” has an overview of all past and upcoming STO’s, as well as the ones which are currently ongoing. He has the possibility to open an upcoming offering, and together with the Security Holder or on his own, he can fill out the necessary information required. In the table he can find some key data:

  • Security name
  • Ticker
  • Asset class or type
  • Projected offering volume
  • Tokens sold
  • Closing date of the offering

 

On this page the issuer can click into any of the current and past offerings to see:

 

  • the Token Offering dashboard, for ongoing STO’s, carrying key information on the token sale and the project
  • The pre-STO dashboard, for upcoming STO’s, where the issuer fills in the required legal and practical security information
  • The post-STO dashboard, where issued security tokens give a summary of information on the security as well as trading information on the secondary market

 

 

Offering dashboard with project information and key metrics

The token offering dashboard is visible for the manager or token issuer, to get a progress update on the sales of the token offerings, as well as see more information on the security that is being tokenized. It is build around some key data points to get insight on the progress and potentially identify whether an offering needs to be promoted.

 

Tokenisation dashboard

Pre-STO set-up with non-sequential flow

To facilitate non-sequential information gathering but keeping a logic within the 6 steps that need to be completed, this non-sequential flow has it’s own dashboard where you can jump into any step at any time. The choice to show tiles instead of a list is specifically done to emphasize the non-sequential nature of the flow.

 

Date
Category
Design, UI design, UX design