The crypto industry has been benefitting from Ethereum-based tokens for a long time. The consistent update feeds many tokens into the crypto market. In order to consider a token as a security token, the token should meet security laws and regulations. In that regard, some popular tokens widely used for crowdfunding like ERC20 also face compliance issues. However, the wider scope of tokenization requires an increasing need for security tokens. With this urge, the Ethereum blockchain community released the ERC1400 token standard as a solution. This new token standard meets the necessity of all investors as a security token. So understanding the significance, many of them are now involved in ERC1400 token development.
Keeping that in mind, let us discuss the process behind the development of ERC1400 token and what business benefits a crypto startup will get from it.
What is ERC1400 Token?
An ERC1400 token is a security token that complies with regulatory norms. Generally, the issuance and management of securities on the Ethereum blockchain require certain conditions to meet. Likewise, these tokens support asset transfer to eligible investors meeting certain conditions like KYC and AML compliances.
Besides, this token is interoperable with other smart contracts and other tokens. So this token could support the existing and newer assets like publicly traded equity and bonds, real estate, artwork, etc. In ERC1400 security token the ability to reverse and view the transaction makes this token standard more transparent. With that ability, as an investor, you can know why your trades have failed and what is necessary to meet security compliance.
Therefore, the ERC1400 standard provides a framework for a security token that should meet the regulatory norms. If you are a crypto token enthusiast, knowing the benefits of this ERC1400 token could help you know the possible business opportunities.
So let us see the…
Key Benefits of ERC1400 Token
The increasing demand for security tokens not only creates investment opportunities. But also let the investors think about the business benefits. Here, creating an ERC1400 standard will let you earn several business benefits. They are,
The ERC1400 security token has adhered to security compliances. Along with this, the first-in-class transfer restrictions and checking with real-time status give investors a secure investment option.
- The interoperability of ERC1400 tokens increases access to various assets. That means this token can work with any token and smart contracts. This automatically increases the efficiency of your business.
- With regulatory compliance and global reach, the ERC1400 standard has better capital-rising scope when you look for STO crowdfunding. So you can add more exposure to your business.
- ERC1400 security token allows the investor to gain partial ownership. This prevents the token issuer from transferring the token to another person. Thus the investor will be protected from the risks of investment.
- ERC1400 standard also helps investors to recover assets easily with its reverse or force transfer capability.
- The transactions are validated with token holders’ approval. So the on-chain and off-chain transactions are highly protected.
The above-mentioned are the business benefits of owning an ERC1400 security token. Now let us have a quick overview of…
Token Standards that Support ERC1400 Token
The benefits clarify that the investment in this token is safer and free from investment risks. To support this capability further, the following token standards come under this token standard.
- ERC-1594: Core Security Token Standard – It is the security token standard used to check the validity of a transfer and confirms whether the transfer is successful or not.
- ERC-1410: Partially Fungible Tokens – It is the token standard that ensures the partial token balance is available to the token holder through metadata.
- ERC-1643: Document Management Standard – This token standard checks documentation regarding the security of the token attached to the smart contract.
- ERC-1644: Controller Operations – This token standard gives authority to the investor or the token holder to perform force transfer between addresses.
So far, we have seen the key benefits and significance of the ERC1400 security token in a detailed manner. Now you may have a clear thought about this token standard. And how they benefit your business. Knowing them could create interest in developing an ERC1400 standard. So let us see…
How to Create ERC1400 Token?
Unlike a utility token, security token development is not an easy task. The token standard requirements and the functional & security features to meet regulatory compliance are the factors to consider while creating this ERC1400 security token. This requires certain development procedures and qualified developers from a reputed Crypto Token Development Company. Speaking of that, ZAB Technologies is one of the predominant Crypto token development companies in the market. The development procedure we follow are,
- We analyze your need for token development and plan for the requirements with utmost care for its full functions.
- Our team of experts analyzes technical requirements like smart contract programming and security modules.
- Our token developers develop the wireframe with all features and functions of the token by meeting your business needs and security compliances.
- The functionality and features including the smart contracts are tested by our testing team to ensure bug-free working.
- After careful inspection, the token will be deployed in the blockchain successfully.
So from idea gathering to creation, our team of experts will take care of all the necessary things. Apart from this, the astonishing quality standards make us the pioneer in crypto token development. Let us explore…
Why Should You Choose ZAB Technologies for ERC1400 Token Development?
ZAB Technologies is a leader in creating crypto tokens in the crypto industry. We follow top-notch quality standards in meeting your business desire in crypto token development. Our extensive experience in token development keeps your business unique from its counterparts. The team of experts will be there to resolve the complexity of ERC1400 token development.
Looking for world-class development that ensures the creation of secure, hassle-free functional, and feature-rich ERC1400 security tokens, then get in touch with ZAB Technologies. So, If you require suggestions on the same, never hesitate to contact us anytime!! Our team experts are here to assist you right from ideation to deployment.
