An $STO (Security Token Offering) is a fundraising method in which security tokens—digital representations of ownership in real assets like equity, debt, or real estate—are issued using blockchain technology. Unlike ICOs (Initial Coin Offerings), which typically offer utility tokens with unclear regulatory status, STOs are regulated and must comply with securities laws.

Key Features of STO

Regulated Offering: Must comply with regulations like the SEC in the U.S. (Reg D, Reg S, etc.).

Tokenized Securities: Tokens represent real financial assets, such as company shares or bonds.

Investor Protections: Include legal rights like dividends, voting, or profit-sharing.

Blockchain-Based: Uses blockchain for transparency, security, and automation (e.g., smart contracts).

Restricted Trading: May have lock-up periods or restrictions depending on the jurisdiction.