Basics of Security Token

Security Token revolutionizes capital markets, and make it accessible to all population under the same level of regulatory scrutiny.

  • What is security token?

    Security Tokens (STOs) are digital representations of traditional financial products like common shares, preferred shares, convertible bonds, etc. STOs combine the regulatory transparency of traditional markets with a lower cost of issuance, quicker speed of settlement and improved democratization of access.

  • Is it legal?

    STOs will soon be regulated and legalized. Domestic media reports have indicated that the anticipated path of domestic regulators will be to:

    • Create a licensing regime for STO issuance and trading platforms.
    • Licensed platforms will be able to facilitate streamlined issuances of TWD $30M
    • Raises above TWD $30M will be possible through Taiwan's regulatory sandbox.
    • Licensed platforms will be able to support secondary market trading in both (2, 3)
    • Detailed regulations around security tokens are expected by the end of June 2019.

  • What is MAX security token?

    MAXST (MaiCoin Asset Exchange Security Token) refers to MaiCoin's current application with Taiwan's regulatory sandbox for the issuance and trading of a STO on the MAX Digital Asset Exchange. The approval, issuance and details of MAXST are pending for regulatory approval. Highlights of the structure include:

    • Economics: Entitles holders to a dividend.
    • Investors: Will be open to all registered global investors.
    • Trading: MAXST will be traded freely on platforms, but the economic benefits will be exclusive to MAX users (i.e. dividend distribution will be exclusive to MAX accounts).

Importance of Security Token

We all want to invest in high-potential opportunities, empowering investors to participate in early stage with small capital. This is where security token comes in as part of the inclusive financial system.

  • Why are STOs exciting?

    Security Tokens (STO) are exciting because they represent a significant change in the operation of capital markets. STOs will allow smaller, early stage companies the ability to raise funds at a lower cost of capital. Investors will benefit from capital growth with clearly defined disclosure obligations. The overall ecosystem will benefit by the efficient settlement, lower cost of issuance and access to global liquidity.

  • Where do security tokens get their value?

    Security Tokens (STO) derive their value from their representations of physical underlying asset or cash flow.

  • Why do experts like security tokens?

    As mentioned in the first question under this section, the advantages brought by security token will benefit the overall ecosystem by the efficient settlement, lower cost of issuance and access to global liquidity.

Buying Security Token

Traditional stock market has limited trading hours. Security tokens will instead be traded 24/7/365 around the clock.

  • Who can trade STOs?

    • We believe STOs should be open to all global investors.
    • We also believe that to realize equality of financial opportunity, all investors should be able to participate in high-quality investment opportunities.
    • We believe this opportunity should be open to retail investors and not be limited to accredited and professional investors
  • What are the trading hours for STOs?

    Security token is traded 24/7/365 around the clock, so you can buy and sell anytime once you're a verified and qualified users of our security token exchange.

  • What are the macro benefits of STOs?

    • We expect STOs to be accretive to Taiwan’s economy, youth opportunities and capital markets.
    • STOs could be particularly beneficial to small and medium-sized companies with outstanding products to launch their products successfully to sell internationally.
    • When more high-quality companies are sufficiently funded, it produces momentum for job creation.
    • STOs unlock value of global capital by offering affordable investment options, and drive growth in small and medium-sized businesses.

Benefits of Security Token

Being highly liquid, regulated and affordable, security token uncovers the opportunities to power businesses with high potential, and retaining our best-in-class talents.

  • Benefits to Taiwan's economy?

    • Attracts foreign capital to Taiwan to invest in local startups and SMEs, which fund high-quality companies that generate job opportunities for local residents. This in turn stimulates consumption and economic activities locally.
    • Reduces brain drain, and retains top-notch talents in Taiwan.
    • Closes the gap between Taiwan and Asia's financial hubs - Hong Kong and Singapore.
  • Benefits to enterprises in Taiwan?

    • Acquires foreign capital to uncover international opportunities.
    • Enables businesses to hire and retain best talents locally to drive professional human capital growth.
  • Benefits to investors?

    • Increases liquidity in previously illiquid asset classes.
    • Realizes financial inclusion with minimum capital as low as a few hundred TWD.
    • Provides fast settlement to eliminate counterparty risk.
    • 24/365/7 trading
  • Benefits to overall financial system?

    • Constructs low-cost asset custody solutions relative to traditional methods.
    • Offers low cost and fast dividend or interest distribution, security issuance and settlement.
    • Boosts trading and fundraising efficiency.