How to do an STO in Singapore
Ressos is the only international law firm in Singapore with an exclusive focus on blockchain/cryptocurrency, tokenisation and both STOs and ICOs. We have extensive experience covering a wide range of STO projects, ranging from private placements of securities to retail tokens across different underlying asset classes including securities, cryptocurrencies, real estate and precious metals.
What is a Security Token Offering?
Security token offerings can be viewed as a specialised form of corporate financing. In consideration for his payment to the Issuer, the investor receives a digital token which may be connected to a right to receive a dividend, a revenue share, a voting right, a license, a property right or a right to participate in the future performance of the Issuer. Subject to any contractual limitations, there are no restrictions on the part of the Issuer with regards to how the raised funds may be used. Since there is no dilution of equity, STOs are an attractive alternative to venture capital and other traditional forms of equity financing.
Tokenisation, the process of creating a digital token from an underlying asset such as shares in a company or a physical asset, is widely viewed as a game-changer for financial markets. A natural evolution of the traditional concept of securitisation, tokenisation is creating a highly liquid trillion-dollar market of digital securities. This is an unprecedented opportunity for companies wishing to raise funds.
Ressos has considerable expertise in STO matters and is currently working on a large number of projects, including asset-backed tokens, stablecoins, tokenised investment funds and other types of securities.
In particular, we advise on whether certain token offerings will be viewed as securities by regulators internationally and assist clients in complying with applicable securities laws and regulations.
We offer a "one-stop" full service solution for all legal, tax and corporate services aspects of an STO structured through Singapore, Hong Kong or offshore jurisdictions. In particular, we have notable experience in the structuring and implementation of hybrid structures involving a token issuer in Singapore or Hong Kong with an underlying offshore fund structure.
Where required by local regulation or specific client requirements, we work in conjunction with Singapore advocates and solicitors, tax consultants and other services providers. We have strong relationships to specialised consultancies and financial advisors, and are able to facilitate fundraisings and capital introductions.
Fees and cost
Our fee structure is value-based and broken down into stages and milestones, with flat-fee service packages allowing for transparency and budgeting without unwanted surprises.