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 may provide rights to dividends, profit sharing, or voting, similar to traditional securities. This approach allows companies to access a broader pool of investors while offering a regulated and secure investment opportunity in the growing cryptocurrency market.