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STO
(Security Token Offering)
An STO (Security Token Offering) is a regulated fundraising method where blockchain-based digital securities (tokens) are sold to investors, combining aspects of ICOs and traditional securities. STOs must comply with SEC regulations like Regulation D or A+.
Unlike utility tokens, security tokens represent real assets (equity, debt, or real estate) with enforceable rights. The global STO market reached $4.7 billion in 2021. Benefits include 24/7 trading, fractional ownership, and automated compliance via smart contracts. However, liquidity remains limited as most trade on specialized platforms like tZERO rather than mainstream exchanges like NYSE.
Unlike utility tokens, security tokens represent real assets (equity, debt, or real estate) with enforceable rights. The global STO market reached $4.7 billion in 2021. Benefits include 24/7 trading, fractional ownership, and automated compliance via smart contracts. However, liquidity remains limited as most trade on specialized platforms like tZERO rather than mainstream exchanges like NYSE.