ERC-1404 is a token standard on the Ethereum blockchain that provides a framework for creating security tokens. Unlike other token standards such as ERC-20, which are designed for utility tokens, ERC-1404 tokens are designed to represent securities, such as stocks or bonds.
ERC-1404 tokens have specific features that make them suitable for security token offerings (STOs). For example, they can be programmed to comply with regulatory requirements, such as Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations, and can also be designed to ensure that only eligible investors can participate in the offering.
Additionally, ERC-1404 tokens can be programmed to restrict transfers based on certain conditions, such as geographic location or investor accreditation status, which can help issuers comply with securities regulations. This feature also allows for greater control over the transferability of the tokens, making them more suitable for use as securities.
Overall, ERC-1404 provides a standard for creating security tokens on the Ethereum blockchain that comply with regulatory requirements and can be designed to meet specific issuer needs.
