What if you could change how businesses raise capital and investors access opportunities? The answer lies in the security token offering platform. It’s a new and exciting trend in the world of blockchain technology. STO platform development can be a game change for businesses looking to tokenize their assets and comply with regulations.

As per my research, the overall revenue data may be restricted; nonetheless, the market itself is anticipated to experience a significant increase. According to certain reports, the market for STOs in Europe could reach 900 billion euros by the year 2026. Hence, it depicts room for business growth.

So, are you also looking to create STO Platform? If yes, this blog is for you. It will explore insights about the cost to develop STO platform  and other factors related to cost estimation.

 

Quick Summary: Are you wondering what is the cost to develop STO platforms? This blog will help you learn the exact cost estimation, cost-influencing, factors, and ways to reduce the cost. This blog will also cover how to launch an STO platform, its benefits, and different types of STO services.

 

Introduction of STO Platform

The STO platform is a financial tool built on blockchain technology to facilitate issuing, e-management, and trading security tokens. It allows businesses to raise capital by creating digital securities, a tokenized version of traditional assets like bonds and stock.

These tokens represent investment or ownership rights in the underlying assets. The platforms integrate blockchain technology to tokenize real-world assets, ensuring secure and efficient transactions. By leveraging smart contracts, STO platforms automate compliance with regulatory standards that reduce overhead.

Hence, STO development platforms empowers businesses to access investors, democratizing investment opportunities while complying with legal frameworks.

 

How Does The STO Platform Work?

Like ICO token development services, security tokens help startups raise capital for crypto projects and new businesses. The platform became popular because of the challenges of obtaining finance from traditional venture investors. STOs are legal and regulated, so businesses can raise funds safely.

In crypto-fractionalization, security tokens secure real-world assets through tokenization or securitization. As per research, global real estate is worth approximately $326.5 trillion in total, while the world’s overall market capitalization is projected at $91 trillion, and these assets can be tokenized.

Tokenization simplifies securities trading and reduces administration costs. Once equality markets adopt securitization, paperwork will also decrease.

 

Tokens often represent this security asset:

• Real Estate: Like REIT, a real estate equity can be convertible into security tokens
• Capital Markets: Businesses might tokenize their share to give investors voting rights or dividends.
• Commodities: Tokens can be made from commodities for STOs.
• Equity Funds: These can be tokenized their shares, giving token holders a piece of the fund’s profit.

Security tokens offer the same assets as traditional investing platforms. Tokenization does not change these securities. Instead, STOs provide fresh investment techniques.

 

5 Popular  STO Platforms

Fueled by blockchain technology, STO platforms are rapidly changing the financial landscape. Let’s discuss some of the popular STO platforms:

• Securitize
• Polymath
• Harbor
• Tokensoft
• Securrency

1. Securitize

It’s a leading STO platform that issues and manages security tokens. Securitize provides a comprehensive solution, including token creation, investor onboarding, smart contracts, and compliance management. The platform is used by different types of businesses, including investment funds, startups, and real estate developers.

 

2. Polymath

Polymath is another popular STO platform that streamlines security token issuance procedures. It provides a toolkit for businesses to build and manage their own security tokens. Numerous businesses, including financial institutions, banks, and startups, use the platform.

 

3. Harbor

This platform is designed to tokenize real estate assets. Harbor enables businesses to tokenize real assets and sell them to investors worldwide. The platform is used by several real estate businesses, including investment funds and security businesses.

 

4. Tokensoft

Tokensoft caters to the needs of businesses looking to issue digital securities. Their scalable and user-friendly platform empowers businesses to develop and manage security tokens efficiently. Numerous businesses, including investment funds, startups, and real estate developers, use the platform.

 

5. Securrency

It is designed to bridge the gap between traditional finance and the blockchain world. Securrency facilitates a platform to issue and trade security tokens that are complaint with existing regulations. The platform is used by different institutional investors, including asset and bank managers.

 

 

How to Launch Security Token Offering?

Do you know how to launch a security token offering? Well, the STO platform involves critical key components and steps to be carried out. Hence, it would be better to reach out to a reputed and experienced security token development company. By approaching professionals, you can launch your STO successfully with the following key steps:

• Preparation
• Pre-STO
• STO for accredited investors
• Post-STO

 

1. Preparation

Before launching your STO, you need to define your projects, the assets being tokenized, and the fundraising goals. During the phase, you can get help from a legal adviser to understand all the regulations on how the token can gain value. Here, you analyze the market for your offering and ensure your project aligns with regulations.

 

2. Pre-STO

Before STO development or you must introduce it to the market. That’s where the marketing strategy raises awareness and attracts potential investors. Develop a detailed whitepaper explaining your project, token’s utility, and investment opportunity. Technical and legal teams are assembled to ensure compliance and blockchain app development services for your tokens.

 

3. STO for Accredited Investors

Securities laws typically restrict STO participation to accredited investors who meet certain incomes.  During the STO, investors purchase the tokens using currency (fiat or crypto). Smart contracts on the blockchain handle the secure issuance and token transfer.

 

4. Post-STO

Once the fundraising target is met, the STO concludes. This stage involves managing the tokenized security, guaranteeing ongoing regulatory compliance, and facilitating secondary market trading for your tokens, if applicable. You also need to focus on delivering on the pre-defined outlined in your whitepaper to maintain investors’ confidence.

 

How Much Does It Cost to Develop STO Platform?

If you are searching for the cost to launch an ICO or STO, that means you are interested in its development. So, if you are curious to know the STO platform development cost, you need to understand that there is no fixed cost. Different factors, such as the STO platform’s type, features, development team, and many more, can influence the cost to develop STO platform.

However, we can consider $8000 – $25000 as the overall STO exchange platform development cost for a general estimation. In case you have unique requirements for your projects and no doubt their’ complexity will increase that influence of the cost as mentioned in the table below:

 

App Type	Estimated Cost	Time Frame
Simple STO Platform Development	$9000 – $16000	4 to 6  Month
Medium Complex STO Platform Development	$16000 – $21000	6 to 9 Month
High Complex STO Platform Development	$25000	11+ Month

5 Factors Affecting the Cost to Develop STO Platform

STO has emerged as a promising new avenue for fundraising that offers a transparent and regulated alternative to traditional methods. However, before developing your STO platforms, you must be aware of the factors affecting STO or tron token development. If you are not familiar with the factors, take a look at the following key components:

• Platform Features and Complexity
• Development Approach
• Development Team Location and Expertise
• Type of Token Standard
• Maintenance and Support

 

1. Platform Features and Complexity

The core functionalities of STO platforms directly impact their development cost. Their basic features, like investor dashboard KYC/AML verification and token issuance, are less expensive than advanced features like margin lending, secondary market trading, and complex compliance checks.

 

2. Development Approach

There are two different development approaches- from scratch and leveraging open-source code. If you develop a STO platform from scratch, it will contribute to an increased cost. At the same time, the open-produce code provides a pre-built platform with faster deployment times and lower costs.

 

3. Development Team Location and Expertise

The developer’s experience and location impact the STO platform development services. If you hire STO developers or company in a region with a high cost of living, it will be more expensive than hiring developers in a region with a lower cost. Similarly, if you hire skilled developers, they will charge a high hourly rate, contributing to the cost to develop STO platform.

 

4. Type of Token Standard

Choose a token standard to make crowd-sale more realistic. ERC20 became the primary token standard in ICO and remains the most popular. Project owners now refer to different protocols that have been released recently. Hence, a new token standard may be less expensive than the ERC protocols.

 

5. Maintenance and Support

Building your own STO platform is just the first step. Ongoing maintenance and support are significant for integrating future updates, addressing bugs, and ensuring the platform remains secure. They require a specific amount of investment, which impacts the overall  cost to develop STO platform.

 

 

5 Ways to Reduce the Cost to Develop STO Platform

No doubt, security token offering development services brings a lot of benefits to a business. However, some businesses find it costly to develop their own STO platforms. If you feel the same way, there is no need to worry. Here are some of the effective ways to help you reduce the cost to develop STO platform.

 

• Prioritize Core Features
• Leverage Open-source Technology
• Adapt Agile Development
• Outsource Strategic Task
• Consider a Cloud-based Solution

 

 

1. Prioritize Core Features

There is no need to insert every feature into your initial platforms. Just focus on the core features and functionalities significant for a successful STO, such as KYC/AML compliance checks, token creation, and secure investment transactions. You will add more features later based on market demand and user feedback.

 

2. Leverage Open-source Technology

As you know, the blockchain world thrives on open-source projects. So, you are advised to explore existing and well-established blockchain frameworks such as Hyperledger  Fabric or Ethereum. These frameworks provide a strong foundation for reducing the need for development from scratch.

 

3. Adapt Agile Development

Traditional waterfall development approaches can be inflexible and expensive. However, the agile development approach is the opposite. This development approach allows quicker feedback loops and cost-effective adjustments during the STO trading platform development process.

 

4. Outsource Strategic Task

Not all development task require your in-house team. To develop a successful STO platform in a cost-effective manner, you are advised to consider outsourcing particular functionalities like security testing or smart contract auditing to a blockchain development company. This will allow you to access expert resources without expanding the permanent payroll.

 

5. Consider a Cloud-based Solution

Cloud-based platforms offer scalable infrastructure without the upfront investment of physical servers. Hence, this translates to lower platform maintenance costs and the ability to pay only for the resources used in development. Providers like Microsft Azure and Amazon Web Services offer robust solutions for blockchain platforms.

 

Why Should Entrepreneurs Develop STO Platform?

Security tokens have changed the way investments and assets are looked at. Tokenizing assets and putting them on the blockchain brings numerous business opportunities. If you want to know more about how the development of security tokens can be beneficial for your business, consider the following top 5 compelling reasons:

• Global Reach
• Transparency
• Increased Liquidity
• Cost-effectiveness
• Future Potential

1. Global Reach

Earlier fundraising relied on local investors. However, the STO platform taps into the global investor pool. STO leverages blockchain technology to be accessible to anyone with an internet connection, broadening the potential investor base significantly.

 

2. Transparency

Blockchain’s transparent and immutable ledger is its strength. An STO platform built on blockchain provides an auditable and secure record of all transactions. Hence, this fosters trust with investors who can easily verify the legitimacy of offering and track their investments.

 

3. Increased Liquidity

Traditional assets like real estate are illiquid, making selling or buying quickly difficult. However, security tokens issued through STOs, represent fractional ownership of such assets. This allows for easier selling and buying on secondary markets, increasing liquidity for both entrepreneurs and investors.

 

4. Cost-effectiveness

The STO platform is more cost-effective than the old fundraising methods involving intermediaries. On the blockchain, smart projects automate tasks and streamline procedures that reduce reliance on third parties and other associated fees.

 

5. Future Potential

STO platforms are still changing, but the potential is vast. As the technology matures and regulations become clearer, STO platforms are poised to become a force in fundraising. By building an STO platform now, businesses can position themselves at the forefront of this innovative financial landscape.

 

 

Types of Security Token Offering Development Services

Security token offerings are changing fundraising by leveraging blockchain technology. It caters to businesses looking to raise capital through compliant tokenized securities. Do you know about different types of STO services? Here are some of the key types:

• Asset Token Development
• Equity Token Development
• Debt Token Development
• STO White Paper Creation
• STO Website Development

 

1. Asset Token Development

This service converts tangible assets into digital tokens. With these tokens, businesses can tokenize real estate, intellectual property, art, and future revenue streams. STO development company uses secure blockchain protocols to create tokens with immutable and transparent ownership records.

 

2. Equity Token Development

Equity token development enables the creation of tokens representing business shares for established and startup businesses alike. These tokens function similarly to traditional stock in that they offer investors ownership rights and potential dividend payouts. The development process involves creating smart contracts for equity tokens issuers, transfer, and voting.

 

3. Debt Token Development

Debt tokens, like bonds, promise interest-bearing payments. STO development services help businesses generate the best tokens for fixed-return investors. Smart contracts manage the repayment schedule and automate interest distribution, ensuring a transparent and secure debt financing process.

 

4. STO White Paper Creation

The STO white paper outlines the project’s details, token, and compliance framework. The STO platform development company writes attractive white papers that inform potential investors and ensure regulatory adherence.

 

5. STO Website Development

A well-designed website is the key center for your STO. Security token offering development services provider facilitates user-friendly beset that explain the offering, display the team, and support AML/KYC for compliance investors onboarding.

 

Comparing Custom STO Development vs Ready-made Options

If you are confused between ready-made STO development and custom options, start with evaluating based on the following aspects:

Features	Custom STO development	Ready-made STO platforms
Functionality	Can include your desired features	Features are pre-built and do not cover all needs
Flexibility and Customization	High-tailored to specific needs	Low-limited customization options
Scalability	Highly scalable to future growth	Limited scalability by platform design
Security	Full control over security measures	Relies on the platform provider’s security protocols.
Cost	Higher development and ongoing maintenance costs	Lower upfront cost and potential for additional fees.

Tech Stack For STO Development

Security token offerings leverage blockchain technology to build and manage investment opportunities. Creating an STO platform requires a robust tech stack encompassing different tools and technologies. Here is a breakdown of the key components, you must know:

 

Component	Description	Examples
Blockchain	The foundation for ensuring security and recording transactions.	Ethereum, Hyperledger Fabric, Tezos
Smart Contracts	Self-executing code automates token functionality.	Solidity (Ethereum), Chaincode (Hyperledger Fabric)
Token Standards	Define how tokens interact with blockchain and other applications.	ERC-20 (Ethereum), ERC-1400 (Security tokens)
KYC/AML Tools	Prevent fraud and Verify investor identities	Onfido, Sum & Substance
Compliance Tools	Ensure adherence to regulations.	Harbor, TokenSoft
User Interface (UI) & User Experience (UX) Design	Build a user-friendly platform for investors.	Design tools like Figma, Sketch
Backend Development	Develop the server-side logic of the platform.	Programming languages like Python, Java

Wrapping Up!

STO platform development can be a significant investment, but the potential benefits outweigh the cost. By leveraging blockchain technology to tokenize assets and attract investors, businesses can unlock new opportunities for growth and innovation.

So what are you waiting for? Consult a smart contract development company to bring your idea to life. You can consider Dev Technosys, which focuses on clients’ satisfaction. Our team of dedicated developers is always there to fix issues raised, resulting in an ideal outcome.

 

Frequently Asked Questions

 

1. How Much Does It Cost To Develop ERC20 Token?

The cost to develop ERC20 token depends on different factors like the platform’s features, complexity, tech stack, and development team locations. On average, the cost can range from $8000 to $25000.

 

2. How Long Does It Take To Develop STO Platform?

There is no limited time frame for developing security token offering services. However, you can estimate 3 to 11 months for its development. The time depends on your project’s requirements.

 

3. How Much Does it cost to hire blockchain developers?

The cost to hire blockchain developers can be $15 to $25 per hour. Developer’s fees depends on tehri skills, talents, and the location they belong from. However, the cost to hire developers can be changed.

 

4. What Are the  Key Features of STO Platform:

Here is a list of top key features that a successful STO platform must include:

• Security token issuance and management tools
• Subscription management for STO offerings
• Investors onboarding and AML/KYC process
• Secondary market trading capabilities
• Compliance tools and regulatory guidance

5. What Are The Future Trends For STO Platforms?

Here are some future trends for STO platforms:

• Regulatory clarity and global standards
• Increased focus on compliance
• Tokenization of illiquid assets
• Secondary market development
• Interoperability and cross-chain solutions.