Welcome to the brave new world of blockchain-based securities!
What is an STO?
STO stands for security token offering. It is a process similar to an ICO where an investor exchanges money for coins or tokens representing their investment. They are linked to an underlying investment asset in a way like stocks, bonds, real estate investment trusts (REIT) or other funds.
Security Tokens are defined as financial securities in accordance with the Howey test and empower investors with financial benefits such as:
• Profit Sharing Rights
• Buy-Back Rights