STO (Securitized Token Offering) refers to the offering of assets in the form of revenue, profit, asset etc., of an enterprise. That means that right and share of an enterprise is being sold based on the offering done by the relevant enterprise. In accordance with the STO , if tokens are offered, it will have to comply with the existing regulations and jurisdictions where the enterprise falls.

Jim Preissler, a contributor at forbes writes that the total size of cryptocurrency markets started to approach nearly $1 Trillion after several years of explosive, exponential growth in late 2017, and early 2018 and STOs could be one of the key killer mainstream applications of blockchain and cryptocurrencies that could change this.

Blockchain and crypto currency industry is facing a lot of challenges and mostly these challenges are directly related to regulations. Most of the blockchainers, startups, investors and technocrats have agreed to follow the guidelines based on STO. However, exchanges have many concerns too regarding the STO because if it is implemented, marketplaces and exchanges will have to be properly licensed in order to operate the services as per the locally regulated standards of that particular location. They are also concerned about the initial investment and requirements needed to get licensed for offering tokenized security offering.

Sanjay 기자 [email protected]