What Is Standard Tokenisation Protocol
Standard Tokenisation Protocol (STP) is a blockchain-based protocol designed to make the tokenisation of assets, such as real estate, stocks, bonds, or other forms of value, more accessible and efficient for businesses and individuals.
Tokenisation involves converting real-world assets into digital tokens that can be easily managed and traded on a blockchain. This can be done by creating a smart contract that represents the asset and its ownership rights.
STP aims to standardise this process and make it interoperable by providing a set of standards and guidelines for the tokenisation process. With a common standard, businesses and individuals can create regulatory-compliant tokens that can be easily transferred and traded on any blockchain platform (interoperable).
Smart contracts are digital contracts with the terms of the agreement directly written into code. It allows blockchain platforms and developers to automatically enforce, verify, and facilitate the negotiation and performance of a contract when predefined conditions are met.
Smart contracts’ codes are immutable which means that once they are deployed on a blockchain, they cannot be altered. This immutability ensures that the terms of the contract are tamper-proof. Additionally, as the contract’s execution is governed by the blockchain’s consensus mechanism, smart contracts are not controlled by a single entity or authority, making them decentralised and trustless.
How Does Standard Tokenisation Protocol Work
Here is an overview of how STP works:
- Select the asset for tokenisation
The first step is to select the asset to be tokenised with STP. The assets that can be tokenised include but are not limited to real estate, art, collectables, stocks, and bonds.
- Token classification
After selecting the asset that is to be tokenised, the individual or entity needs to decide on the token’s name, symbol, supply, rights, and privileges. Some questions to consider include will token holders have ownership rights over the underlying asset and will the holders be entitled to income generated by the asset.
The above rules and parameters for the tokenised asset will be later put into a smart contract.
- KYC and AML verification
Depending on the jurisdiction and type of asset, both token issuers and buyers have to comply with legal standards and may be required to complete Know Your Customer (KYC) and Anti-Money Laundering (AML) verification.
- Stake STPT
To tokenise an asset, the individual or entity is typically required to lock up a specific amount of STP tokens (STPT) as collateral. This collateral helps secure the network and prevent abuse.
- Tokenisation of asset
Once the steps above have been completed, the individual or entity can tokenise the asset and mint a specific number of tokens representing ownership of the asset. The STP platform, using smart contracts, will generate digital tokens that represent the asset and which will be distributed to token holders.
- Purchasing the tokens
Individuals or entities can purchase these tokens through an STP-compliant exchange or platform. The tokens will be transferred to their digital wallet, proving their ownership of a portion of the underlying asset. These tokens can be traded on the secondary market as with any other cryptocurrency or digital asset.
Standard Tokenisation Protocol Key Features
These are some of the key features of Standard Tokenisation Protocol:
STP provides a standardised framework for tokenising real-world assets. This process involves representing ownership of assets by creating digital tokens on a blockchain. These tokens are backed by the value of the underlying assets.
Tokenisation allows for fractional ownership of assets. This means that an asset can be divided into smaller units, and each unit can be owned by different individuals or entities, making it accessible to a broader range of individuals and entities.
Interoperability, which allows tokens to work seamlessly across different blockchain platforms, is a key focus for STP. The interoperability of the tokens created with the STP platform offers flexibility and broader adoption of tokenised assets.
Smart contracts are self-executing contracts with the terms of the agreement directly written into code. They automatically enforce, verify, and execute when certain predefined conditions or criteria are met.
Smart contracts are integrated with the STP platform which allows for the automation of various processes, such as dividend payments, asset management, and compliance checks.
STPT is the native and utility token of the Standard Tokenisation Protocol. These are several of its use cases including, but not limited to:
STPT tokens are used as collateral to tokenise real-world assets. Individuals or entities who want to create tokens on the STP platform need to lock up their STPT tokens. The amount of STPT required depends on the value and type of asset that is being tokenised.
STPT tokens are used to pay for transaction fees in the STP ecosystem. Fees are required when tokens are created, transferred, or traded on the platform.
STPT holders have governance rights in the STP ecosystem. This includes participating in the decision-making processes by proposing and voting on changes to the protocol, such as voting on upgrades or modifications to the tokenomics.
STPT has a total supply of 1,942,420,283 tokens of which all 1,942,420,283 tokens are in circulation as of October 2023.
The planned distribution of STPT tokens is as follows:
- Foundation – 45%
- Private Sale – 30%
- Team – 18.75%
- Community – 7.5%
- Public Sale – 3.75%
STPT reached an all-time price high of $0.285 on October 6, 2021. Since its all-time high, the price of STPT has fallen by more than 70% as of October 2023. With a circulating supply of 1.94 billion STPT tokens, Standard Tokenisation Protocol has a market capitalisation of $116.55 million.
Who Created Standard Tokenisation Protocol
Standard Tokenisation Protocol was founded in 2019 by Minhui Chen and Richard Lee. Chen, CEO and co-founder of STP, has founded several startups, such as Block72 and Global Blockchain Innovative Capital (GBIC). Lee is the CTO and co-founder of STP and a partner at GBIC, a multi-strategy crypto fund.
STP managed to raise $7 million in its seed funding round in June 2019. Some notable investors in STP include FBG Capital, Block VC, NEO Global Capital, and Alphabit Fund.
How To Trade STPT On The Flipster App
To trade STPT on Flipster:
- Download the Flipster app and set-up your account
- Go to [Trade]
- Click on [Search] at the top of the page and type in STPT
- Click on STPT
- In the [Amount] field, type in the amount of STPT you wish to buy or sell. Alternatively, you can select the percentages below to choose how much to use from your available funds.
- Click [Preview order] to check your order
- Once you have confirmed the details, click on [Buy STPT – Long] button or [Sell STPT – Short] respectively.
Disclaimer: This material is for information purposes only and does not constitute financial advice. Flipster makes no recommendations or guarantees in respect of any digital asset, product, or service.
Trading digital assets and digital asset derivatives comes with significant risk of loss due to its high price volatility, and is not suitable for all investors.