<s>
A	O
security	B-Protocol
token	I-Protocol
offering	I-Protocol
(	O
STO	O
)	O
/	O
tokenized	O
IPO	O
is	O
a	O
type	O
of	O
public	O
offering	O
in	O
which	O
tokenized	O
digital	O
securities	O
,	O
known	O
as	O
security	O
tokens	O
,	O
are	O
sold	O
in	O
security	O
token	O
exchanges	O
.	O
</s>
<s>
Tokens	O
can	O
be	O
used	O
to	O
trade	O
real	O
financial	O
assets	O
such	O
as	O
equities	O
and	O
fixed	O
income	O
,	O
and	O
use	O
a	O
blockchain	B-Application
virtual	O
ledger	O
system	O
to	O
store	O
and	O
validate	O
token	O
transactions	O
.	O
</s>
<s>
Due	O
to	O
tokens	O
being	O
classified	O
as	O
securities	O
,	O
STOs	O
are	O
more	O
susceptible	O
to	O
regulation	O
and	O
thus	O
represent	O
a	O
more	O
secure	O
investment	O
alternative	O
than	O
ICOs	B-Application
,	O
which	O
have	O
been	O
subject	O
to	O
numerous	O
fraudulent	O
schemes	O
.	O
</s>
<s>
Furthermore	O
,	O
since	O
ICOs	B-Application
are	O
not	O
held	O
in	O
traditional	O
exchanges	O
,	O
they	O
can	O
be	O
a	O
less	O
expensive	O
funding	O
source	O
for	O
small	O
and	O
medium-sized	O
companies	O
when	O
compared	O
to	O
an	O
IPO	O
.	O
</s>
<s>
Though	O
sharing	O
some	O
core	O
concepts	O
with	O
ICOs	B-Application
and	O
IPOs	O
,	O
STOs	O
are	O
in	O
fact	O
different	O
from	O
both	O
,	O
standing	O
as	O
an	O
intermediary	O
model	O
.	O
</s>
<s>
Similarly	O
to	O
ICOs	B-Application
,	O
STOs	O
are	O
offerings	O
that	O
are	O
made	O
by	O
selling	O
digital	O
tokens	O
to	O
the	O
general	O
public	O
in	O
cryptocurrency	O
exchanges	O
such	O
as	O
Binance	O
,	O
Kraken	O
,	O
Binaryx	O
and	O
others	O
.	O
</s>
<s>
In	O
terms	O
of	O
legislation	O
,	O
some	O
jurisdictions	O
do	O
treat	O
STOs	O
,	O
ICOs	B-Application
,	O
and	O
other	O
cryptocurrency-related	O
operations	O
under	O
the	O
same	O
legislative	O
umbrella	O
.	O
</s>
<s>
In	O
general	O
,	O
though	O
,	O
STOs	O
are	O
placed	O
under	O
securities	O
legislation	O
(	O
together	O
with	O
traditional	O
IPOs	O
)	O
,	O
and	O
ICOs	B-Application
under	O
utilities	O
,	O
with	O
the	O
differentiation	O
being	O
made	O
mostly	O
on	O
a	O
case-by-case	O
basis	O
.	O
</s>
<s>
Moreover	O
,	O
this	O
assumption	O
of	O
utility	O
has	O
been	O
abused	O
by	O
some	O
STO	O
offering	O
companies	O
to	O
sell	O
securities	O
without	O
regulatory	O
compliance	O
(	O
maliciously	O
labeled	O
as	O
ICOs	B-Application
)	O
.	O
</s>
<s>
Such	O
companies	O
include	O
messaging	O
apps	O
Kik	B-Protocol
and	O
Telegram	B-Application
,	O
the	O
former	O
being	O
sued	O
by	O
the	O
SEC	O
for	O
over	O
$100	O
million	O
and	O
the	O
latter	O
delaying	O
their	O
offering	O
plans	O
after	O
similar	O
prosecution	O
.	O
</s>
<s>
One	O
of	O
the	O
main	O
selling	O
points	O
of	O
cryptocurrencies	O
such	O
as	O
Bitcoin	B-Protocol
has	O
been	O
the	O
decentralization	O
aspect	O
,	O
by	O
which	O
no	O
government	O
can	O
influence	O
or	O
control	O
the	O
currency	O
.	O
</s>
<s>
So	O
far	O
,	O
STOs	O
have	O
been	O
regulated	O
and	O
legalized	O
in	O
many	O
countries	O
where	O
ICOs	B-Application
have	O
not	O
,	O
due	O
to	O
fitting	O
in	O
many	O
already	O
pre-existing	O
regulations	O
regarding	O
securities	O
.	O
</s>
<s>
Switzerland	B-Protocol
Regulated	O
by	O
FINMA	O
and	O
subject	O
to	O
the	O
same	O
laws	O
as	O
traditional	O
securities	O
.	O
</s>
<s>
Thailand	O
Legal	O
approval	O
of	O
ICOs	B-Application
has	O
already	O
been	O
made	O
by	O
Thailand	O
's	O
Securities	O
and	O
Exchange	O
Commission	O
.	O
</s>
<s>
China	O
STOs	O
and	O
ICOs	B-Application
are	O
banned	O
and	O
constitute	O
illegal	O
financial	O
activity	O
.	O
</s>
<s>
South	O
Korea	O
Security	O
tokens	O
are	O
under	O
the	O
same	O
prohibition	O
as	O
standard	O
ICOs	B-Application
.	O
</s>
<s>
Ethereum	B-Application
is	O
the	O
leading	O
blockchain	B-Application
platform	O
used	O
for	O
issuance	O
.	O
</s>
<s>
Stellar	B-Protocol
comes	O
in	O
second	O
position	O
with	O
a	O
major	O
German	O
STO	O
of	O
the	O
restaurant	O
chain	O
L'Osteria	O
in	O
late	O
2019	O
.	O
</s>
<s>
Also	O
in	O
2019	O
,	O
Swiss-based	O
Blockchain	B-Application
developer	O
,	O
Jibrel	O
AG	O
,	O
in	O
collaboration	O
with	O
Abu	O
Dhabi	O
Global	O
Market	O
,	O
launched	O
Jibrel.com,	O
a	O
platform	O
for	O
offering	O
security	O
tokens	O
tied	O
to	O
startup	O
equity	O
.	O
</s>
<s>
There	O
are	O
at	O
least	O
30	O
confirmed	O
security	B-Protocol
token	I-Protocol
offering	I-Protocol
service	O
providers	O
.	O
</s>
