The Security Token Offering (STO) is a digital token backed by blockchain technology that represents a stake in STO assets, enabling digital fundraising while still complying with government regulations. Security tokens require extensive regulations. STOs are digital representations of real-world assets such as bonds, stocks, or gold. As a result, security token offering services enable asset tokens for many businesses.
Security tokens are similar to certificates issued for stocks. In the case of stocks, ownership information is entered into the document as an official certificate of ownership. For STO, the information will be recorded for security tokens, but the main difference is that the STO is saved in the blockchain and represented by a token.
