What is a Security Token Offering (STO)?

A security token offering (STO) is a fundraising event in which a company sells blockchain-based tokens representing ownership of tangible or intangible assets, such as real estate, art, or company equity. STOs are similar to initial coin offerings (ICOs), but the tokens offered in an STO are considered to be securities and are subject to regulation by financial authorities. As a result, STOs are subject to the same investor protections as traditional securities, such as stocks and bonds. STOs can…