Security Token Offering or STO
STO is an abbreviation of a Security token offering. Just like ICO, the investors received a crypto token or coin that represents an investment. But in STO, the investment contract is represented as various underlying assets like funds, real estate investment trust, and stocks. · Security Security is the negotiable and fungible financial instrument that holds some monetary value. It is backed by any real-world asset like property or company. · Security token It represents the information of any investment product provided by the owner and recorded on the blockchain. The ownership information in the case of traditional stocks is written on the physical document and issued as PDF digital certificate. But in STO, the asset is recorded in the blockchain but issued as a token. STO is the hybrid approach between IPO and ICO because of the overlapping of both methods. Difference between STO and ICO The process of both STO and ICO is the same but the characteristics...