Standard Token Protocol (STP), a firm hoping to bring transparency to the tokenization process, announced Wednesday it has raised a total of $7 million through the sales of its STP tokens. The fund was raised through two rounds from investors including Neo Global Capital, BlockVC, AlphaBit.
STP develops an open-source standard for projects looking to tokenize their assets. The company highlights compliance, claiming that the protocol will ensure tokens fully comply with region-specific regulations and KYC requirements. Meanwhile, the firm’s STP tokens could be used to pay for issuance fees and compliance investigation or to be used for staking and governance on STP’s platform, per the company’s white paper.
STP’s offering of compliance-proof tokenization protocol seems timely as initial coin offerings (ICOs) regain momentum, with 109 offerings raising a total of over $236 million in April alone, according to ICObench’s data. However, the ICO sector is also notorious for token issuers tirelessly chanting “my tokens are not securities” against the court and the news rife with details of scams.
“STP is in a unique position to save billions of dollars for companies and startups that are unable to attain funding due to the costs involved with hiring security lawyers, accountants, and investment banks,” STP founder and CEO Mike Chen said in a statement.
STP was initiated as part of blockchain consulting firm Block72’s plan to develop the latter's digital asset investment banking business. Moving forward, the firm is scheduled to issue the first digital asset using its STP standard in Sept. 2019 and will have more tokens issued by the end of the year.