What are the advantages of companies issuing security tokens instead of traditional stocks?

3 answers

• Alford TruelsenOct 13, 2025 · a month ago
  One of the main advantages for companies to issue security tokens instead of traditional stocks in the digital currency market is the increased liquidity. Security tokens can be traded 24/7 on digital currency exchanges, allowing investors to buy and sell them at any time. This provides a more flexible and accessible market for companies and investors alike. Additionally, security tokens can be divided into smaller fractions, which allows for greater participation and investment opportunities for a wider range of investors.
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• Shawn TaylorApr 10, 2025 · 7 months ago
  Another advantage is the reduced cost and complexity of issuing security tokens compared to traditional stocks. The process of issuing security tokens can be streamlined and automated using smart contracts, eliminating the need for intermediaries and reducing administrative costs. This can make it more cost-effective for companies to raise capital and manage their shareholder base. Furthermore, security tokens can offer programmable features, such as automated dividend payments and voting rights, which can enhance shareholder engagement and simplify corporate governance.
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• M. FASRUL FAIS ILMANApr 29, 2023 · 3 years ago
  BYDFi, a leading digital currency exchange, believes that security tokens offer companies the opportunity to tap into a global investor base. With security tokens, companies can reach investors from all around the world, breaking down geographical barriers and attracting a diverse pool of capital. This can help companies raise funds more efficiently and expand their business on a global scale. Moreover, security tokens can provide increased transparency and security through the use of blockchain technology, which can enhance investor trust and confidence in the market.
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