What is Security Token Offering STO?

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Security Token Offering STO

Security Token Offerings (STO) are the successor to Initial Coin Offerings. The security tokens, which are released via a STO, are backed by real-time, tangible assets, whereas Utility tokens offered by an ICO represent future access to a company’s product or service.

So, the value of a security token increases or decreases on the basis of the performance value of the asset. For example, if a security token represents a share of a publicly traded company and if the publicly listed share increases in value, so will the security token and vice-versa. STO’s abide by regulatory frameworks and compliance set by SEC, unlike the completely unregulated environment of ICOs.

A new kid on the block named Security Token Offering or secure token offering aids in turning companies’ illiquid assets into tokenized assets for STO. The secure token offering is the next generation in the field of cryptocurrencies. Blockchain App Factory can help in creating STOs in the custom-made blockchain.

 


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Technology 4 weeks 0 Answer 193 views Pioneer 0

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