Security Token Offerings

A Security Token Offering (STO, i.e. tokenized IPO) is a type of public offering in which tokenized digital securities, known as security tokens, are sold in security token exchanges. Tokens can be used to trade real financial assets such as equities and fixed income, and use a blockchain virtual ledger system to store and validate token transactions.

Much like traditional securities, security tokens are subject to regulation and need to conform to strict compliance standards. By leveraging blockchain technology, security tokens allow for many traditionally cumbersome and highly manual processes to be automated, and provide a single source of truth that all parties can depend on.