A Security Token Offering (STO) is a type of public offering in which tokenized digital securities, known as security tokens, are sold in security token exchanges. STOs are digital representations of real-world assets such as bonds, stocks, or gold, and they enable asset tokenization for many businesses. STOs are similar to initial coin offerings (ICOs) in that they are coins issued to investors to represent their investments, but they differ in their utility and compliance with securities legislation. STOs are more susceptible to regulation and represent a more secure investment alternative than ICOs, which have been subject to numerous fraudulent schemes. STOs require extensive regulations and must meet regulatory requirements, which ensures investors protection. STOs can be seen as a hybrid approach between cryptocurrency ICOs and traditional IPOs.