Security Token Offering
A security token offering, or STO, is a digital token that uses blockchain technology to represent a share in an asset. STOs make it possible to fund digital projects while still adhering to legal requirements. Security tokens are not traded on standard token exchanges because they are subject to strict rules. They are fungible tokens, though, which means that they have monetary worth, making them comparable to ICOs (initial coin offerings).
STOs serve as electronic substitutes for physical assets like bonds, equities, or even gold. Security token gives services providing asset tokenization for various enterprises as a result.