Security Token Offering
/ˈsɪkjʊrɪti ˈtoʊkən ɔːfərɪŋ/
Definitions
- (n.) A fundraising mechanism in which investors receive blockchain-based tokens representing ownership interests or securities in an entity.
The company launched a security token offering to raise capital while complying with securities regulations.
Forms
- security token offering
- security token offerings
Related terms
See also
Commentary
A security token offering must comply with applicable securities laws, unlike typical initial coin offerings; legal classification depends on jurisdiction and token characteristics.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.