Security token offering

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STO is an acronym for "Security Token Offering," a term meant to rebrand ICO or Initial Coin Offering. The concept of a STO was first popularized by Overstock's former CEO, Patrick Byrne.[1]

STOs mimic traditional equity shares and may give investors some rights within the company. They replace traditional shares and involve registering with regulators for the traditional initial public offering process.[2] STOs may even include dividends and governance rights.[3]

Tokens may be backed by equity, limited partnership shares or commodities.[4]