Major financial enterprises are looking to blockchain technology to unlock the next fintech innovation. While these enterprises may possess a wide array of resources, they lack the nimbleness of a startup and would thus need a prolonged period of time to integrate blockchain-enabled solutions into their operations. Thus, fintech startups, with the aim of applying blockchain solutions to the financial market, are emerging.

One such startup is Mobu, which has already raised over $3 million. Mobu aims to provide a platform that can facilitate the arrival and success of security tokens. Mobu provides asset issuers with all the technical and legal support needed to successfully launch an STO.

Similar to a traditional investment bank, Mobu will help its clients issue equity in a company; however, this time the issuance will be in the form of tokens. Mobu will give clients the technological infrastructure needed to raise capital, perform KYC/AML checks, gain and maintain regulatory approval, and even decide the limitations on token ownership.

While Mobu is not the only fintech startup that aims to capitalize on the rising potential of STOs, it is the first one to truly immerse itself in the product it provides. Mobu's own tokens, unlike its competitors, are security tokens.

A STO Platform that Runs on Security Tokens

Security tokens, unlike utility tokens, are backed by an intrinsic value, either in the form of an asset or recurring income (like dividends).

However, a security token can allocate much more than income, and Mobu is not limiting the benefits its security tokens provide. Holders of Mobu will receive voting rights, thereby enabling them to gain the same benefits typically associated with ownership of equity.

Mobu holders will additionally gain the benefit of an annual dividend, which is another perk traditionally available to equity ownership. Mobu itself is demonstrating how security tokens carry superior benefits when compared to utility tokens.

In addition to the benefits stated above, Mobu tokens also provide rights of ownership.

Whole Mobu is developing an STO platform, the company will own various assets. Mobu has been given the right to purchase a 15% stake in a functional South African stock exchange. Moreover, Mobu is pioneering crowdfarming technology and will have direct ownership of crowdfarms that will apply innovative solutions to boost production. A major benefit of Mobu tokens' classification as security tokens is that, in case of liquidation, toke holders will have rights to assets.

Unlike Mobu's competitors, this fintech startup has put its development where its mouth is. While other STO platforms either use utility tokens or simply lack internal tokenization, Mobu has issued security tokens which share the benefits and intrinsic value associated with traditional equity holdings.

As Mobu develops a platform for the provision of technical and legal support for STO offerings, its experience from its own security token sale will serve as a valuable competitive advantage for advisory support to its clients.