Frame_36
Security token offerings (STOs) are changing the fund raising landscape by allowing secure, compliant, and transparent tokenization of real-world assets. In 2025, STOs are set to transform sectors such as real estate, equity, and asset management using blockchain compliant frameworks to promote trustless investing. This blog dives into STO development services, highlights their key use cases, and offers tips on choosing the right partner to launch your STO on a platform such as Ethereum, Binance Smart Chain, or Tezos.
What is an STO?
Security token offerings (STOs) are a regulated fund raising method where blockchain-based tokens symbolize securities that are backed by tangible assets such as real estate, equity, or commodities. Unlike Initial Coin Offerings (ICOs), STOs follow stringent regulatory guidelines like the SEC or FINMA, ensuring that investors are protected and everything is legally compliant.
Key token standards include:
ERC-1400: A standard developed by Polymath for Ethereum-based security tokens designed to comply with local laws.