A Security Token Offering (STO) is an offering and sale of digital tokens which are considered securities under federal U.S. law. Security tokens sold via an STO are virtual tokens that exist on a blockchain and meet the definition of a security under federal U.S. law, whether the tokens represent function on a platform (known as “utility tokens”), ownership of a real-world asset (asset-backed tokens), interest in a fund (fund tokens), equity (equity tokens) or debt (crypto bonds).
Among the benefits of using a STO are that companies and funds may raise capital from investors and benefit from the advantages that blockchain technology offers, including:
We can help you through every stage of an STO. Our team has represented a wide range of clients in all types of STOs by providing legal advice and additional services throughout the STO process, including: