Security Token Offerings: The Next Big Thing in Fintech

Security token offeringsSecurity token offerings - otherwise known as STOs for short - are beginning to provide some stiff competition to IPOs.

There are already compelling examples of security token offerings being put to good use.

An STO is in the works for a luxury residential development in the British city of Manchester - with at least $25 million in assets being tokenized on the Tezos blockchain.

STOs began to gain prominence as another model for fundraising crypto projects, initial coin offerings, began to fall away.

Launching an STO is a much more involved process for startups, but that said, it's worth doing things properly.

STOs are different because they involve shares in real-world assets being distributed on the blockchain.

A threat to IPOs?Some analysts believe security tokens represent the future - a financial product that one day could supersede the old-fashioned way of doing things entirely.

Accountability lies in how many STOs are being ranked based on their viability - and such scrutiny can occasionally be difficult to find in the traditional finance hubs of London, Tokyo and New York.

Companies are now trying to educate businesses and investors about what STOs have to offer.

The platform allows startups to turn almost anything into a digital asset - from tangible products and private or company assets to intangible assets such as technology, innovation, entertainment and even gastronomy.