Digital securities platforms must always think about their customers, the issuers. It especially concerns a business model they utilize. We at Securer understand this very well and emphasize the business aspect of DSOs in addition to robust technology by default. Below, see our three fundamental solutions to meet a specific need of each our client.
Regular Securer Solution
Our first business model implies issuance, management, and trading of the equity on Securer. As a digital securities provider, we receive a monthly management fee and share revenues from the trading fees. If the company issuing tokens decides to leverage this approach, it signs an agreement with us, and we specify the management fee. The revenue sharing depends on the specific company and case.
White Label Solution
The White Label solution allows the client to run multiple DSOs and own the trading assets and revenues. It is suitable for the corporations promoting their respective brands and involves a provision of the setup and monthly support fees. In short, obtain a full-stack solution and start attracting DSO clients while never worrying over the technical specs of the digital securities.
Custom Solution
The custom DSO model applies to the situations when companies want to architect a new vertical for digital securities while partnering with the DSO platform. In this case, extensive research and development is required. Our revenue as an R&D partner might consist of equity holdings, custom software development fees, as well as the license fee for the IP we offer.
Comparison to the Available Platforms
The mentioned business models are core to the operations of Securer, focusing on the issuance and management of the security tokens. At the same time, other companies operate by utilizing different models.
SeriesOne is a financial technology corporation assisting with raising funds through digital securities offerings. Issuers of the securities pay fees based on the selected type of offering: setup costs, maintenance fees, a success or a subscription fee. 5% from the total offering proceeds go to SeriesOne as a sales commission.
Token-based business models
Swarm operates as a non-profit organization, not charging fees for the issue of tokens. Meanwhile, the business model of the company engages in the staking process. The process requires the company to stake a particular amount of SWM tokens to trigger the minting and distribution process of SRC-20 tokens to the investors. Staking applies to an entirety of the infrastructure uses, including the absence of the actual fundraising event.
Staked tokens remain locked for the life of the opportunity while remaining in the custody of the DSO platform. The unlocking occurs after redemption of the outstanding SRC-20 tokens. The stake varies between 0.10% from the tokenized asset value exceeding $250 million and 0.50% for the tokenized value below $500 000.
Polymath utilizes its own tokens, POLY, for supporting its network. Poly is an ERC20 token utilizing Ethereum blockchain. The ST-20 token standard of Polymath ensures standardization of the token issuing processes. POLY is the only token available for use on the Polymath platform, providing the necessary economic foundation.
Aftwerword
The comparison of the business models provides a better understanding of the difference between the platforms. Most platforms concentrate on their technology and offer issuance services based on a direct fee model or token-based economies. Securer focuses on the business model and specifies the three business models available for its clients and projects.