Security Token Offering

Page Summary

A security token offering is when tokenized digital securities are sold on security token exchanges to raise money for the company issuing them. Traders and investors can use these tokens to trade financial assets. A blockchain stores the tokens and validates transactions between buyers and sellers of the tokens. Digital securities are more susceptible to regulation than cryptocurrencies.


How are STOs different from ICOs?

STOs are real securities like stocks, tied to a company, whereas ICOs are cryptocurrencies that come into existence out of thin air. Both ICOs and STOs take place on cryptocurrency exchanges like Binance, Kraken, and Huobi. STOs are legal in most countries, whereas ICOs aren’t.  

Examples of STOs

INX Limited, L’Osteria, and Jibrel AG are examples of companies that held STOs. 

Security Token Offering Service Providers

Pathfund, MemePad, TrustPad, and AMPnet are security token offering service providers. Companies can organize an STO via them if they meet certain criteria.


eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.

Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.

Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.


Please enter your comment!
Please enter your name here

This site is registered on as a development site.