Create Security Token on Ethereum
Secure, compliant and intuitive security token generator
Zero smart contract programming required
Immediate ownership over generated tokens
Set custom parameters from ERC1400 token standard family
Seamless integration with digital asset custody solutions
Create token product documentation
To create a token, Connect Wallet first
Ethereum security token generator FAQ
What is a security token on Ethereum?
A security token is a digital asset that represents ownership in an underlying security or other type of financial instrument. Tokenized securities are similar to traditional securities, such as stocks and bonds, but they are issued on the Ethereum blockchain. This allows for improved transferability, transparency and settlement as well as asset servicing efficiency compared to traditional securities. Security tokens can be used to represent a wide variety of assets such as stocks, bonds, funds, certificates, structured products, derivatives, commodities and more.
What is a security token smart contract generator?
A security token smart contract generator is a tool that simplifies the process of creating and deploying security tokens on the Ethereum blockchain. It provides a user-friendly interface and pre-built templates that can be customized to meet the specific needs of your project.
How much does it cost to create a security token?
The cost of creating a security token can vary depending on the complexity of your project, the features you need, and the provider you choose. Creating a security token using a smart contract generator like Token Tool is more cost-effective than developing your own smart contract. Using Token Tool, the maximum cost of creating a token with all security token specific features enabled currently stands at $230. Having software developers program the smart contract from scratch can easily cost between $3,000 and $20,000 including necessary auditing costs.
What types of security tokens can I create with a generator?
Most security token generators can be used to create a variety of different types of security tokens, including:
Equity tokens: These tokens represent ownership in a company.
Debt tokens: These tokens represent debt securities issued by a company.
Asset-backed tokens: These tokens represent ownership in or the right to receive payments from an asset, such as real estate or intellectual property.
What are the requirements for using a security token smart contract generator?
To use a security token smart contract generator, you will need:
A web3 wallet, such as MetaMask or Coinbase Wallet.
Alternatively you can use a bank-grade key custody solution with multisig capabilities and sophisticated approval rules like Fireblocks, Metaco, Ledger Enterprise or Qredo.
Sufficient funds to cover the transaction fees as well as gas fees for deploying your smart contract to the Ethereum blockchain.
A basic understanding of security token regulations.
How do I use a security token smart contract generator?
The specific process for using a security token smart contract generator will vary depending on the generator that you choose. However, most generators will follow a similar general process:
1.Connect your web3 wallet to the generator.
2.Enter the details of your security token, such as its name, symbol, total supply, and token type.
3.Review and customize the pre-built smart contract template.
4.Deploy the smart contract to the Ethereum blockchain.
Which security token standards are supported, can I use the ERC1400 standard?
Yes, you can use the ERC-1400 on Ethereum to issue a tokenized security as it’s among the most compliant standards available. Token Tool makes use of different security token standards from the ERC-1400 family: ERC-1643, ERC-1594, ERC-1410, ERC-1594. You can find all details about these token standards in our documentation here.
How can I mitigate the risks associated with using a security token smart contract generator?
To mitigate the risks associated with using a security token smart contract generator, you should:
Carefully choose a generator with a good reputation and a proven track record.
Thoroughly review the smart contract code before deploying it.
Seek legal and regulatory advice from experts.
What is the difference between a custom smart contract and a pre-built template?
A customized smart contract is specifically designed to meet the unique needs of your project. This can be beneficial if you have specific requirements that are not covered by a standard template. However, it is important to have a solid understanding of smart contract development to create a customized smart contract. A pre-built template is a set of code that can be used as a starting point for creating a security token smart contract. This option is often faster and easier than starting from scratch, but it may have fewer customization options.
Can I have my security token contract audited?
Bitbond Token Tool’s smart contract templates are audited by CertiK, a leading auditor in the field. You can always seek additional auditing from an auditor of your choice to perform further due diligence on the smart contract of the tokenized security you’re looking to issue. If you wish to have access to the smart contract prior to carrying out a mainnet transaction, you can access the code by configuring your security token smart contract on the Sepolia testnet. Tokens created with Token Tool are automatically verified, meaning that the smart contract is publicly accessible on the block explorer.