My role

  • Business development, Planning, Strategy
  • Product design
  • Project management
  • User flow and wire framing
  • UI/UX design

Year

  • 2019-2020

Security Token Offering (STO)

Since the middle of 2018, the term 'Security Token Offering' is being heard more often. While many crypto startups still trying to raise capital through ICO (Initial Coin Offering), some talented startups like Polymath are starting to make crypto platforms that tokenize real-world assets on the blockchain network.

Some of STO companies are also beginning to tokenize real estate, commercial loans, and company stocks.

I was planning to make a business plan to tokenize real estate assets during my STO sector research. I found out that if a landlord needs to raise the capital through STO, it means that he/she can't get loans from commercial banks because of their credit score or financial problems on land or building.

Commercial Vessels

In the traditional alternative investment market, there are three major assets that investors heavily invest in. These are real estates, commercial shipping carriers and airplanes.

Based on my experience in the blockchain field and a 6month in-depth investigation project on the shipping industry in Denmark, I hypothesized that the ship asset is more suitable to tokenize than the real estate asset, because of its substantial asset prices. Shipowners always need to raise capital from banks with humongous financial fees.

The commercial vessel price range is from $10 million to $200 million per vessel. To finance the acquisition, ship owners have borrowed from financial institutions or selected investors through maritime funds or private funds. However, in the structure of relying on existing lenders for a large part of the commercial ship price, it is difficult to make a profit due to increasing interest costs and various financial fees.

If the blockchain tech can eliminate at least single financial intermediaries while raising money for the ship, I thought it could give benefits to both shipowners and investors.

Development Goal

  • Developing a business structure to reduce financial fees during fundraising
  • Developing a profitable ship investment product using cryptocurrencies
  • Developing efficient security token investment system and secure security token custody

Execution

The project is still work in progress...