Security Token Smart Contracts Development

  • Regulated financial instrument - Security
  • Key challenge: Compliance automation
  • Complex jurisdiciton-specific rules influencing transferability
  • Investor qualification required
  • Dividend, Interest, Royalties distribution
  • Tranches with different rights
  • Enforced transfers, re-issuances
  • Lockup periods, Vesting, Drag and Tag, Voting
  • Can be built on Public or Private/Permissioned blockchain
  • Can support extra features as described for Utility Tokens
  • May require off-chain components for compliance and benefit collections
  • We can offer legal compliance advisory with our partner law firms in Singapore, London, Gibraltar and elsewhere internationally

Security Tokens can bring many benefits to the traditional world of issuing and trading of securities, such as access to a wider base of investors, 24/7 liquidity, peer-to-peer trading, raising funds in cryptocurrency, removing of costly and often inefficient intermediaries.

However, these are regulated financial instruments and as such require careful planning, legal and technical analysis to ensure compliance with complex rules that vary across jurisdictions.

Rockchain can help you analyse your goals and requirements and develop the Security Smart Contract to match your expecations and compliance rules.

Contact

How do we develop Security Token Smart contracts?

Advisory / Consulting phase

Compliance

We work with you to analyze your requirements with the objective to fully understand your goals, legal compliance implications and identify necessary off-chain components to reliably link an asset to the digital token.

Technology suitability

We assit you in selecting the most useful distributed ledger technology and protocols to best support your goals.

Technical specification

Based on the results of the previous phase, we create a Technical Specification document, describing the attributes of your Token and all other necessary components, such as other smart contract or off-chain components.

Confirmation of compliance

The technical specification document is foramted so that it's readable by your legal advisers, to confirm compliance with the applicable laws and regulations.

Development

We develop the DLT/Blockchain solution, smart contract(s) and other necessary components, following industry best coding practices, using robust and production tested frameworks and libraries. We will make the resulting code available to you in your private GitHub repository. You may chose to make the repository public, and allow your community to independently verify contract compliance with your other project documentation.

Testing

Unit Tests

Unit tests are actions that focus on a specific unit of code, usually a function, and stress it by trying out different inputs, both normal and abnormal, checking that the outputs are as expected.

Integration Tests

We then run Integration Tests for the contract as a whole. Integration tests involve multiple pieces of the code, usually functions, being run in concert in order to simulate a process flow and verify that the different parts work together as specified.

Testnet deployment

Lastly, we deploy all components on a testnet and run the tests again in a distributed environment.

Code Audit

Audit preparation

An audit should be conducted prior deployment on the main net (e.g. Ethereum) by a reputable, independent third party. We’ll work closely with your Code Auditor, to ensure a smooth and seamless auditing processes.

Audit feedback implementation

We’ll carefully analyse and process feedback received from your auditor and implement it into the code.

Deployment

We will deploy the solution into a production environment and run all tests again.

Support

We actively support your projet post-deployment, addressing potential issues and help you grow your business in a comfortable and reliable way.