Small-cap investors face many barriers to investing in public stocks and IPOs, including high minimum purchase requirements and wire transfer fees for international offerings
Fortunately, the blockchain is set to shake things up with a new kind of public offering, tokenized IPOs (also known as Security Token Offerings, or STOs)
Tokenized IPOs can enable fractionalized ownership as well as transactions using digital currencies such as Bitcoin and Ethereum, increasing accessibility and reducing fees for investors of all sizes - even for international listings
Sign up to trade Bitcoin, Ether, and exclusive international tokenized IPOs on a national stock exchange today
By: Jai Waterman, Chief Enterprise Architect
Tired of being priced out of exciting new IPOs, or passing on international stocks because of high minimum purchase requirements or hefty wire transfer fees?
You’re not alone. And what’s more, accessible public markets aren’t just around the corner - they’re already here.
And it’s all thanks to the tokenized IPO.
What is a tokenized IPO?
Often referred to as Security Token Offerings (STOs), a tokenized IPO is simply a traditional (soon to be legacy) IPO powered by the blockchain.
Tokenized IPOs are good news for investors because:
Fractionalization: Individual shares/tokens too costly for your budget? Many tokens can be split into smaller units (just like breaking a $20 bill), meaning you can gain a foothold in more investment opportunities at lower cost.
Digital assets: Purchase tokens with assets like Bitcoin and Ether (referred to colloquially as "cryptocurrencies"), where transferring funds can cost up to 95% less than traditional wire transfers for national (fiat) currencies.
Global access: International borders disappear as the blockchain enables fast, instant access to publicly traded STOs around the world.
Companies will choose tokenized IPOs / publicly traded STOs because:
Speed: Legacy IPOs take anywhere from 12-24 months to complete, compared to as little as 60 days for a tokenized IPO.
Cost: Going public with a tokenized IPO can cost as little as $50,000, compared to at least $500,000 for the legacy model.
Other reasons to get excited about tokenized IPOs:
More opportunities: With lower costs and faster timelines, more companies may choose to go public - giving investors everywhere more chances to take advantage of lucrative offerings.
More access: Tokenized IPOs allow you to purchase as few or as many shares as you want - no more high minimums that discourage lower-budget investors from participating in exciting new opportunities.
More perks: Blockchain tech makes it faster and more affordable for companies to pay dividends, potentially increasing the number of companies that choose to issue dividend-paying shares instead of locking your money away until you sell.
Get ready to explore tokenized IPOs
The first tokenized IPOs on a leading national stock exchange are about to go live, available to investors like you exclusively through a Blockstation trading account.
Visit our upcoming listings page for more details.
Are you excited for tokenized IPOs? Do you have any questions? Tag us on social media (Twitter: @Blockstation, Facebook: @BlockstationTO) and let us know!
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