Now, there's this cool thing called "blockchain," and it's like a superpower that can make money stuff work in a different, fairer way. With blockchain, there's a new hero called an STO (Security Token Offering), which represents ownership in the real world.

Normally, investing in traditional assets or private markets are only accessible to accredited investors. Or, in other words, not your every day investor.

But with STOs, we're able to revolutionize that and open up these assets into a global market.

History of STOs

2017 ICO - Some, not all, Initial Coin Offerings that offered guaranteed investment returns actually made them "security tokens"

2018 STO - the SEC actually helped "coin" that term/ “Bitcoin Asset Tokens”

2019 - Tokenized Securities

2020  - Security Token Offerings/Digital Securities

2021 - Asset Backed Tokens

2021 - Crypto Security Tokens/ Real Asset Tokens/Tokenization

2022 - The above shaken not stirred

2023 - Real World Asset (RWA) Tokens

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When Blackrock CEO, Larry Fink, shared his support of STOs, or in other words, “tokenization of assets,” we've since seen the adoption of the term by multitudes of companies, institutions, and even governments, which in essence means the same thing.

When we say tokenization, what we’re actually referring to is the digitization of otherwise traditional finance (Tradfi) processes. So whether you hear STOs, or tokenization of RWAs. Just remember, they’re exactly the same thing.

The relationship between tokenization and security tokens

As explained above, the relationship between tokenization and security tokens is that security tokens are a type of digital asset that can be created through the process of tokenization, with each security token representing a fractional ownership interest in a tokenized asset. When we say tokenization of assets, we are simply referring to the process of issuing a blockchain token that digitally represents ownership or investment rights in an asset.