Use Cases and Success Stories

Various successful use cases and success stories related to the tokenization of real-world assets through security tokens. These examples showcase the potential of tokenization to democratize access to investment opportunities, increase market liquidity, and transform traditional industries.

Landshare is a striking example of the clearest asset tokenization use case. The company is tokenizing residential apartments in the US and offering them both domestically to accredited investors and globally to non-accredited (with some limitations). Such a model allows to sell properties at a higher price due to the liquidity premium and higher demand.

Though many issues aim for global markets, sometimes clients can have a purely domestic focus, where they can leverage a strong local brand. One of our clients sold $1,5 million worth of tokenized villas in Mexico, mostly focusing on the local crypto community and high net worth individuals.

In addition to an expanded investor circle, many entrepreneurs are attracted by the promise of increased liquidity. One of our clients raised $2,5 million even before the offering was launched from their existing base of accredited US investors. The primary reason to go with Stobox was to provide more exit opportunities to their clientele.

For many years we said that tokenization could be a game changer for tech startups, who can get more negotiating power by diversifying their investor circle. We saw that the market finally started recognizing it when a client came to us sometime after graduating from YCombinator. It’s a hardware company improving tracking of utilities consumption in developing countries. They needed the next round to fund the global expansion and wanted to mix in global institutional investors alongside standard VCs.

Some tech startups make another leap and decide to avoid institutional investors altogether. One of our most disruptive clients is a European developer of software to create high-resolution VR replicas of physical spaces. The company intends to raise its next round with token-based crowdfunding targeted at an international audience. The vehicle for the offering is set up in a tax-neutral island nation to avoid double taxation.

Shift to Web3 is more than just technology – it’s also about culture, about being community-first. This philosophy has been embraced by our client from the entertainment industry. The company’s mission is to support artists worldwide, giving them tech-powered tools to express their creativity and build dedicated audiences. In the true spirit of Web3, the client plans for this creator community to be a backbone of their offering, funding it and promoting it to their audiences.

One of the most important use cases is funding the sustainability revolution. Our recent client decided to leverage tokenization to increase the attractiveness of their new green deal – a waste management facility in Canada. The construction financing will be raised from US and Canadian accredited investors using a US-based vehicle.

Another popular jurisdiction for issuing tokens is Liechtenstein. One of our clients has built a massive business for managing properties in the UK and is now testing tokenization as a new tool for reaching investors. The first test case is tokenizing a residential unit using a Liechtenstein-based company, reaching out to European professional investors.

Liechtenstein is an especially good choice for the offering, where reputation and investor protection are of utmost importance. This principle is being used by one of our Middle Eastern clients who plans to raise a massive amount of capital to construct a processing facility in the desert.

Quarry Dynamics security token provides investors with a share of profits from crypto mining operations. This innovative approach fosters the diversification of cryptocurrency mining while granting investors exposure to a crucial aspect of the crypto economy without the need to establish a complex infrastructure.

An exciting feature of Web3 is that it allows for novel solutions to complex problems. One such approach is tokenizing gold that is still in the ground, with the goal of it never being extracted, thus avoiding associated carbon emissions. As most investors never touch the gold they own anyway, such ownership is equivalent to standard gold ownership but is much more sustainable.

Despite its potential for alleviating climate change, crypto is often criticized on ecological grounds for its energy consumption. A European client decided to show that crypto and sustainability shouldn’t be at odds by launching a token offering to fund mining powered by solar energy. The token is launched by a Swiss company, offering investors a world-class legal framework.

We are always keen to work with pioneers that break the limits of traditional business models. One of such clients intends to build the world’s first private equity fund operating as a highly decentralized DAO. The key feature of the fund is going to be a high engagement of each investor in daily operations that allows to drastically reduce overheads, thus achieving superior returns.

Most crypto tokens have been launched with little regard for the regulatory framework. However, with the adoption of MiCA and the severe stance of the US SEC, it becomes imperative for all kinds of tokens to exist in the regulated field. Since our launch, we have been building infrastructure for regulated security tokens, which can also be used by issuers of utility tokens who are dedicated to high compliance standards.

A deeper analysis reveals key insights about Stobox's approach and its impact on the industry: