The process of issuing security tokens to investors in a regulated offering, analogous to a traditional private placement but using blockchain technology to represent and administer investor interests. An STO in the real estate context involves the tokenization of fund interests or property ownership, conducted in compliance with applicable securities laws. STOs are distinguished from Initial Coin Offerings (ICOs), which were frequently conducted without compliance with securities laws and resulted in widespread SEC enforcement action.
Security Token Offering (STO)
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