Book Image

Security Tokens and Stablecoins Quick Start Guide

By : Weimin Sun, Xun (Brian) Wu, Angela Kwok
Book Image

Security Tokens and Stablecoins Quick Start Guide

By: Weimin Sun, Xun (Brian) Wu, Angela Kwok

Overview of this book

The failure of initial coin offerings (ICOs) is no accident, as most ICOs do not link to a real asset and are not regulated. Realizing the shortcomings of ICOs, the blockchain community and potential investors embraced security token offerings (STOs) and stablecoins enthusiastically. In this book, we start with an overview of the blockchain technology along with its basic concepts. We introduce the concept behind STO, and cover the basic requirements for launching a STO and the relevant regulations governing its issuance. We discuss U.S. securities laws development in launching security digital tokens using blockchain technology and show some real use cases. We also explore the process of STO launches and legal considerations. We introduce popular security tokens in the current blockchain space and talk about how to develop a security token DApp, including smart contract development for ERC1404 tokens. Later, you'll learn to build frontend side functionalities to interact with smart contracts. Finally, we discuss stablecoin technical design functionalities for issuing and operating STO tokens by interacting with Ethereum smart contracts. By the end of this book, you will have learned more about STOs and gained a detailed knowledge of building relevant applications—all with the help of practical examples.
Table of Contents (9 chapters)

To get the most out of this book

We've focused on organizing the book to fit business and IT beginners in blockchain technology. The chapters are arranged to ensure that they can be followed easily and flow naturally.

Business users can skip the chapters with detailed descriptions on how to develop STO and stablecoin applications and, instead, focus on the chapters with general descriptions of the STO and stablecoin concepts.

IT professionals should read all chapters to gain insights on the business and regulation context for STO and stablecoins, from which a reader will gain basic knowledge on how to build STO and stablecoin applications. It is recommended that IT users download the code and make modifications to adopt the code to their own use cases or exercises.

Chapter 3, Monetize Digital Tokens Under U.S. Security Laws, and other chapters of the book are for general knowledge of the U.S. securities laws and other laws, and shall not be considered as providing legal advice, opinions, or recommendations. For any legal issues concerning the STOs, please consult an attorney specialized in this area.

Download the example code files

You can download the example code files for this book from your account at www.packt.com. If you purchased this book elsewhere, you can visit www.packt.com/support and register to have the files emailed directly to you.

You can download the code files by following these steps:

  1. Log in or register at www.packt.com.
  2. Select the SUPPORT tab.
  3. Click on Code Downloads & Errata.
  4. Enter the name of the book in the Search box and follow the onscreen instructions.

Once the file is downloaded, please make sure that you unzip or extract the folder using the latest version of:

  • WinRAR/7-Zip for Windows
  • Zipeg/iZip/UnRarX for Mac
  • 7-Zip/PeaZip for Linux

The code bundle for the book is also hosted on GitHub at https://github.com/PacktPublishing/Security-Tokens-and-Stablecoins-Quick-Start-Guide. In case there's an update to the code, it will be updated on the existing GitHub repository.

We also have other code bundles from our rich catalog of books and videos available at https://github.com/PacktPublishing/. Check them out!

Download the color images

Conventions used

There are a number of text conventions used throughout this book.

CodeInText: Indicates code words in text, database table names, folder names, filenames, file extensions, pathnames, dummy URLs, user input, and Twitter handles. Here is an example: "Update the truffle.js file configuration."

A block of code is set as follows:

module.exports = { 
  networks: { 
    development: { 
      host: "127.0.0.1", 
      port: 8545, 

Any command-line input or output is written as follows:

truffle compile

Bold: Indicates a new term, an important word, or words that you see onscreen. For example, words in menus or dialog boxes appear in the text like this. Here is an example: "Copy the second account from the account list, and click the Copy button."

Warnings or important notes appear like this.
Tips and tricks appear like this.