What is a STO: the full guide to Security Token Offering

Contents

1. What is the meaning of STO?

2. STO foundry tutorial

3. STO Marketing Strategies

4. Why run STO with CPI Tech?

Security token offerings are often said to be the way to raise financing & attract investors. However, to gain the most from its advantages, you should learn about the opportunities they provide. We have compiled a guide on STO, its development, exchange platform, and marketing strategies. In this article, you will find out the meaning STO can have for your start-up and how to build an STO company.

What is the meaning of STO?

STO stands for a security token offering. It is a public offering for selling tokenized digital securities, known as security tokens. Such tokens are financial instruments that have a monetary value and can be part of a property or a company. They are not sold on regular exchanges. The platforms that offer the ability to trade these tokens must fully comply with the rules, for example, conduct investigations of token listings and exchange of data received, as well as register all investors. Thus, security tokens function on specialized exchanges.

Security tokens have already attracted significant attention from large traditional financial companies and organizations. The crucial reasons for STO research boost are the high potential for the division of shares, the ability to trade at all times, and instant accounting. STO is a blockchain-based financial instrument that enables you to "tokenize" various assets to attract investors worldwide. By buying a token at the first stage of the STO, the investor actually becomes the owner of a stake in the start-up. It is like ordinary shares that are traded on the stock market. Some of the projects that have developed their STO include Blockchain Capital, FilmBusinessBuster, Ledgity, and TapJets. Blockchain Capital raised more than $10 million within six hours of opening its STO.

If you are interested in developing your own security tokens and their exchange platform, here is a short tutorial for you.

STO foundry tutorial

  • Boosting liquidity. STOs provide an efficient transaction process. You should ensure their easy convertibility on your exchange platform.

  • Managing funds. Enable the users of your platform to handle their funds. It can be done with automated integration or manually.

  • Trading anytime. Make your exchange process available 24/7. The users will also appreciate quick and cheap transactions.

  • Multicurrency exchange & Wallets. Provide your users with wallets that securely store multiple currencies. You can add a seamless experience by enabling users to exchange different types of currencies.

  • Blockchain & Smart contracts technology. Your token exchange platform should be based on advanced blockchain technology and smart contracts to make the transaction process secure and flawless.

  • OTC integration. Developing a top-level finance-related component of customer sales to provide a smooth transaction process.

  • Legal compliance. Make sure your STOs comply with current legislation so as not to have any problems with your business.

  • Multi-language communication. Appeal to a wide variety of users by providing multi-language support.

  • KYC implementation. Know Your Customer is important in the STO company development process to maintain the integrity of finances and avoid fraudulent activity.

  • Two-factor authentication. Such authentication is necessary for security and should be provided with Google, Email, phone number, etc.

  • Flexible payment solutions. Enable your users to pay in the way they want: with cryptocurrencies, fiat currencies, or even debit/credit cards. It will help you to attract more investors.

  • Launch a notification system. Let your users know about any updates with notifications. You can send them by email or other services.

  • Transaction history tracking. For your user's convenience and control over their processes, develop a built-in tracking system of all the transactions.


Developing an effective STO platform with high usability is one deal. However, it's completely another to market it. We've collected the necessary marketing strategies to promote your STO platform and attract the right target audience.

STO Marketing Strategies

  • Market study. Before launching an STO platform, you should conduct a market study. It will help you to understand the marketing needs and what solutions you can provide. You will also learn about your competitors and learn how to make your platform stand out.

  • Community creation. For ongoing support of your STO platform, you need to have a strong community of devoted people. To nourish your community, you need to appeal to the right target audience and develop ways to engage their attention.

  • User-friendly website. Develop an easily navigable website to help your customers learn about your platform and its advantages.

  • Influencer marketing. You can expand your audience if you connect with the right influencer in your industry. Check if their target audience coincides with yours and attract more users to your platform.

  • PR campaigns. Launching a PR campaign and creating a press release with a clear explanation of your STO platform will spike the attention of many investors.

  • SMM. To attract and engage with your target audience, you should connect with them on social media channels. Choose the ones that are the most popular among your target audience.

The development of an STO company and STO exchange platform will require time and funds. CPI Tech will help you at all stages of STO development and launch.

Why run STO with CPI Tech?

  • Full legal support for an entire STO process.

  • Development of a robust & customized fundraising platform.

  • Full STO marketing support.

We have experience in providing blockchain developments in various spheres. In fact, we were the first to launch STO in real estate! Our team of tech visionaries went through the long and arduous process of developing the first security token approved by the German Federal Financial Supervisory Authority (BaFin). That's how we launched the world's first mass-market tokenized real estate.

CPI Tech provides all-inclusive services from STO exchange platform development to marketing solutions. Our experts in blockchain technology will create your reliable STO along with a secure exchange platform and will help you attract your audience.

Get in touch, and discuss how you can grow your venture to the next level by crowdfunding with a Security Token Offering.