Security Token Offerings (STO) are initial offerings on security tokens. In my opinion, the concept of Security Token Offering is similar to Stablecoins, only the underlying assets are different, Stablecoins are pegged to gold or fiat money, while STOs are pegged to stocks, bonds and other securities. The process of launching and purchasing STOs is similar to launching an IPO and purchasing shares, except that STOs are recorded on the blockchain. Every investor who buys a Security Token Offering (STO) will automatically own shares in the form of tokens that are recorded on the blockchain and are entitled to yields of both dividends and coupons (interest). So STO is a bridge for government institutions or private companies that will collect funds from cryptocurrency. To issue STOs which must comply with government stock exchanges. In the United States STOs are regulated by the Securities and Exchange Commission (SEC).
What are Security Token Offerings (STO)?
- Thread starter Suba
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Make RIF a learning medium, so that we will get to know more about investment instruments including Security Token Offerings, which are no different from exchanges that provide stocks and bonds in the form of tokens.
