Security Token Offering
Innovative financing for small medium enterprises and corporations
Security token offering
- A Security Token Offering (i.e. STO) is the procedure through which the sale of financial instruments to the public is carried out, represented by digital tokens.
- The token is a digital tool for the representation of an underlying real asset, i.e. a security (e.g. share, bond, derivative, property, title of property etc.), which entitles the holder to receive future cash flows and it mimics the behavior perfectly.
- A company can issue security tokens following the standard procedure for issuing financial instruments to the public, which generally provides (according to different methods from country to country) the publication of a prospectus.
- Then, Tokens can be listed on an ad hoc market and sold against traditional currency or/and cryptocurrency.
Comparative advantages of STO compared to private equity and initial public offering
We are looking to list high quality securities and we will run an initial due diligence before onboarding any new project. In case of established companies we are looking for a solid track record with a compelling industrial plan and a successful management team. Startups will be considered only in exceptional case and will be listed in a separate area of the Andriotto Marketplace.
Security tokenization process