A Security Token Offering (STO) is a fundraising method where companies issue digital tokens that represent ownership in an asset, such as equity or real estate. These tokens are built on blockchain technology, ensuring transparency and security. Unlike traditional fundraising methods, STOs comply with regulatory standards, making them a more secure option for investors. Investors in an STO receive tokens that can provide various rights, such as dividends or voting power, similar to traditional securities. This approach combines the benefits of blockchain, like liquidity and accessibility, with the legal protections associated with traditional investments, appealing to a broader range of investors.