Glossary > Security token offering (STO)

Security token offering (STO)

What is a security token offering (STO)?

A security token offering (or STO) is a regulated way to raise funds through blockchains.

An STO is similar to ICOs. But unlike the latter, investors’ protection is ensured. Indeed, STOs must meet regulatory requirements.

In the past, some unregulated ICOs were fraudulent and brought issues to the market. Regulations were implemented to tackle this.