Security token offerings: The next phase of financial market evolution?

Since the advent of Bitcoin in 2009, the profile of blockchain – a combination of distributed ledger technology (DLT) with a variety of block-based encryption technologies – has soared. There is now a consensus regarding the value of blockchain and other forms of DLT in finance.

Security Token Offerings (STOs) combine the technology of blockchain with the requirements of regulated securities markets to support asset liquidity and the wider availability of finance. STOs are typically the issuance of digital tokens in a blockchain environment in the form of regulated securities. The blockchain environment enhances securities regulation objectives of disclosure, fairness and market integrity and supports innovation and efficiency through automation and “smart contracts”. Read our study to understand the future development of STOs in the financial industry.