STV2 Security Token is a smart contract that is created and represents a security token issued on a particular blockchain network.
- Each such token represents 1 security with some nominal value in a certain currency.
- This token can be used on all hot and hard wallets that support the Ethereum Virtual Machine (EVM).
- All standard functions are provided and implemented.
- STV2 Security Token has some characteristics and restrictions such as - whitelisting, limits, lockups, etc (You can find detailed explanations in the proper sections of this documentation). So tokens can’t move freely between any addresses, conditions established in the smart contract (and may change) must be fulfilled.
https://github.com/StoboxTechnologies/Stobox_STV2_Security_Token
STV2 Security Token is the implementation of the [IERC20](<https://docs.openzeppelin.com/contracts/4.x/api/token/erc20#IERC20>) interface.
An ERC-20 token is a foundational standard for tokens on the Ethereum blockchain. While additional functionality can be extended to implement certain aspects similar to securities, it's important to understand that ERC-20 tokens inherently lack support for regulatory compliance associated with securities. To align an ERC-20 token with the characteristics of a security, several additional components may be necessary:
- Identity and Legitimacy of Participants: This could involve the implementation of Know Your Customer (KYC) and Anti-Money Laundering (AML) processes to verify the identities of token holders.
- Transfer Restrictions: To meet regulatory requirements, limitations on the transfer of tokens between different parties or restrictions on secondary market sales may be necessary.
- Dividends and Rights: Additional smart contracts would be required to facilitate the distribution of profits, dividends, or other rewards to token holders.
- Legal Infrastructure: Creating a legal framework that delineates the rights and responsibilities of token holders may be necessary to align the token with the characteristics of a security.
- Regulatory Compliance Stack: In accordance with regulatory requirements, additional mechanisms for transaction tracking and reporting may be necessary.
In summary, while an ERC-20 token can serve as a foundation for creating tokens that resemble securities, this will require extensive development work, including additional programming, legal analysis, and potentially collaboration with regulatory bodies.
Standard ERC-20 Functions