Decentralized Finance Platform for Tokenized Assets and Security Offerings

Despite the rapid growth of blockchain technology, investment opportunities and trading platforms remained largely centralized, controlled by governing authorities or financial institutions. This created limitations for both businesses and investors:

• Restricted Investment Models: Companies had limited ways of raising funds. Traditional models were restricted to stock markets, leaving no space for blockchain-based crowdfunding through token exchanges or a robust capital raising platform.
  
   
• Lack of Cryptocurrency Integration: Investors were unable to invest in businesses using cryptocurrency formats. The absence of tokenized assets restricted participation from the global investor base that preferred crypto investments.
  
   
• Centralized Exchanges: Prior exchanges were centralized and brokered via intermediaries, resulting in higher fees, longer timeframes, and counterparty risk.
  
   
• Limited Listing Options: Companies did not have an efficient platform for the Security Token Offering (STO) process, and there was no blockchain-enabled secondary market for the company’s token and investors to follow its growth and progress.
  
   

The client sought to create a decentralized, blockchain-based exchange that would provide businesses with comprehensive and secure capital raising options, and businesses would have direct access to the capital markets via tokenized assets, in line with decentralized finance principles.

To address these challenges, we worked with the client to develop and support the implementation of a blockchain platform for the trading of security tokens in a decentralized and secure manner. This solution was focused on smart contract automation, ultimately providing visibility and security to investors. Our key deliverables included:

1. Smart Contracts & NFTs on EOS:
   
    
   • Created and implemented smart contracts for tokens and NFTs in finance on the EOS blockchain, allowing for transparency and immutability.
   • Automated procedures, such as token issuance, transfer, and compliance management, are used to a much lesser degree than would rely on a middleman, supporting decentralized finance principles and enabling blockchain for fintech innovation, forming a complete smart contract exchange.
     
      
2. Blockchain-Based Secondary Market:
   
    
   • Created a secondary market for trading tokenized assets using EOS-based blockchain technology.
   • Brought a peer-to-peer market for trading digital securities and eliminated counterparty risk, as well as a faster settlement time, forming a complete capital raising platform.
     
      
3. KYC Authentication Driven by AI: 
   
    
   • Used ML algorithms to automate the KYC verification process, implementing blockchain KYC solutions to enhance security and compliance. 
   • Utilized models to both satisfy user identity verification and identify fraudulent behavior while meeting all local and international financial regulations. 
     
      
4. Security Token Exchange Platform:
   
    
   • Designed a platform for security token exchange, enabling both retail and institutional investors to participate in tokenized offerings and security token offerings.
   • Allowed companies to conduct STOs while ensuring investor protection and transparency in digital asset trading.
      

The platform successfully achieved quantifiable success and established the client as a leader in decentralized financial ecosystems.

• Efficient Crowdfunding:
  Decentralization combined with smart contracts allowed the removal of intermediaries, which streamlined the fundraising process for both companies and startups, allowing them to raise funds more quickly using tokenized assets and leveraging blockchain for fintech solutions.
  
   
• 41% Increase in Active Investors:
  The client was able to significantly expand its investor base and now has a 41% increase in active investors within the first year, as a result of the innovative issuing of a security token offering to trade and issue tokens. Along with the acquisition, the platform improved investor retention rates, ensuring future engagement and trust.
  
   
• Increased Security & Transparency:
  Every transaction remains safe and verifiable thanks to unchangeable smart contracts.  This fosters trust and provides businesses and investors with the assurance that everything is open and impenetrable.
  
   
• Greater Accessibility:
  The ability to accept crypto investments and peer-to-peer trading will allow the platform to lay the foundation to open opportunities to a worldwide investor community.
  
   
• Efficiency & Cost Savings:
  Automation, blockchain, and ML will reduce operational costs, human errors, and increase efficiencies in managing tokenized assets through smart contract automation and blockchain-based crowdfunding.