The way of successful Security Token Offerings (STO)
Martin KreitmairChief Executive Officer, Tangany
The way of successful Security Token Offerings (STO)
The obstacles of Blockchain
Blockchain might be one of the most discussed technologies in recent years. The technology has experienced a tremendous growth over the years and reaches not only into science but politic, economic and society on a global scale. However, that should not delude over the fact that the technology itself has not yet fully matured. There is still a long way to go to become an essential digital layer.
Private Keys are for sure one of the most tricky parts. Either way the users have to manage it or the developer of the application takes the responsibility, usually a company. Taking the first approach applications are often very hard to use and require some basic understanding of cryptography.
For great user experience, the private keys along with the Blockchain itself need to move into the background. This leads unavoidably to challenges like how to create transactions, how to set up and maintain nodes and how should everything be designed in order to be secure. A lot of tasks, challenges and unanswered questions. And that does not even touch the regulatory aspects when wallets are created for users in an STO.
Tangany’s Solution: Full-Tech Custody Infrastructure
Tangany is a German-based technology company that provides clients a full-tech custody infrastructure to leverage Blockchain. Always with the goal of the clients in mind: the creation of a successful Blockchain use case.
For that, we are focused on usability and security. Our technical solution to store private keys and wallets is state-of-the-art and includes in its core a FIPS140–2 certified HSM (Hardware Security Module). All our clients are assigned to their unique custody KeyVault.
The HSM is covered by a sophisticated security architecture designed by our experts. Everything can be managed via our API which allows seamless integration into any application. A true integration in the background of the client’s software. The only way to enable best-in-class usability. Users (e.g. investors) don’t require any Blockchain knowledge. It’s in the background, it’s invisible.
Tangany handles the complexity of Blockchain fully automated and highly reliable. That includes the node infrastructure to Blockchains like Bitcoin or Ethereum, even the support of Private Blockchains. Transactions are created with our self-developed algorithm for the highest possible efficiency. Ethereum token transactions are even empowered with the needed Gas automatically by using our Gas Tank.
Blockchain Crypto Custody Regulation in Germany and the EU
Regulation on Blockchain tightens globally. The European Union has released a guideline to its member-states to include Blockchain into Anti-Money-Laundry (AML) activities. Blockchain has arrived in the regulated world of economic.
Most of the EU states implemented the regulation into national law by creating registries for Blockchain companies that offer custodian services. However, there are a few nations like Germany that have chosen a more strict approach. From January 2020 there will be a new license for custodian service providers (“Kryptoverwahrer”).
All providers, which store and manage private keys for clients in order to hold crypto assets, are required to obtain that license. This specifically includes even foreign providers.
We at Tangany are already in talks with regulators. As an active market participant in 2019, we benefit from the grandfathering ruling which allows us to continue our service in 2020 without any interruption. Even before we have the approval for the license.
Regulatory safety is key for our clients and for ourselves. We might be able to provide the regulatory umbrella for other custodians that want to do business in Germany or the EU, just drop us a note on https://tangany.com if you want to know more.
A holistic solution for STO
A lot stuff to care about, right? With Tangany’s Custody Infrastructure (see more at tangany.com) you are perfectly covered. In case a client does not only need the pure API to build applications but also a ready-to-use front-end solution, we have also something in store.
Our Whitelabel Wallet solution can be used to kickstart projects. It’s a fully functional wallet solution that enables projects to onboard users/investors. Those are able to buy the client’s token and might be able to create transactions (depending on the client’s desired restrictions). The solution is connected via API to the Tangany main product.
Here are a few visualizations of how it can look like, starting with the plain wallet overview. For customization purposes, elements are easily replaceable with the client’s CI:
Custom URL (e.g. www.client.com/sto)
Custom header image
Custom CI colors
A feature to send a transaction without any hassles:
In the end, it’s up to the client how the wallet should look like. The wallet can manage Bitcoin, Tether, Ether and all kinds of ERC tokens (e.g. ERC20, ERC1594) or just simply the client’s own token (remember the mentioned Gas Tank to empower transactions even without Ether on the wallet).
While the front-end solution is used for the initial token sale, most of the projects are integrating our API into their application in parallel.
We at Tangany have collected quite a lot of experience with use cases like tokenization of real estate, video games, certificates and much more. By following all those projects we have a large ecosystem of services that are complementary. That includes token issuing services like tokeny (Luxembourg) and SHIFT (USA)or legal advice and marketing services.
Tangany in numbers
Tangany has more than 6,000 wallets under custody. That is something we are very proud of! One of our non-disclosed clients has more than 3,000 users who have participated in the token sale in just a couple of weeks.
As the year 2019 is coming to an end, we are thrilled for 2020 with many more features to come. Let us handle the complexity of Blockchain for your success.
Keep learning and keep reading
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