This week, PO8 internally announced what will be the first STO designed in accordance to Bahamian securities jurisdiction. The security token’s smart contracts have been developed in a way that addresses all the guidelines set forth by the governing authorities in the company’s home country of The Bahamas, bringing the STO as close as possible to an approved IPO.

The token will be issued through a reputable, approved third-party custodian with a multi-decade history in securities issuances. The name of the issuer has yet to be made public. Because the STO will be issued through a third-party, PO8 will have very little control over the token supply. This serves as a refreshing break from the current ICO market that has organizations controlling massive majorities of their token’s supply leading to centralization concerns.

This push towards the security token offering comes in response to what many believe to be an immature market. While many first saw STOs as an improvement to the ICO model, it appears the difference, in practice, is insignificant. On the topic, PO8 CEO Director Matthew Arnett had this to say:

STOs, as they currently exist, are not even close to actual securities. Airdropping tokens is not paying dividends. Show me your registered company. Show me your Board of Directors. Show me your financial statements. Show me your registration of offering. This STO has all of that. If you don’t have the equity share tied to an actual token 1-for-1 then where’s the oversight? Where are the checks and balances?

When pressed further he added:

The cryptocurrency industry has to move forward. No longer are we ‘the anarchists’. We are getting to the point where we can see the potential marriage between the digital and analog world. We can tie together the new world and the old world and we can do it with the smart contract system.

The PO8 STO will be issued at a market cap of $300 million. Specifics of the smart contract parameters are outlined in PO8’s 50+ page prospectus. The prospectus will soon be made available to the public.

Background on PO8

PO8 is a Bahamas-based technology organization that works in close contact with the Bahamian government. The group has divisions in VR, Blockchain, Underwater Artifact Recovery, Museum Development, and Gaming.