Security token offering (STO) is a financing vehicle that tokenize assets and is seen as a compromise between initial public offering (IPO) and initial coin offering (ICO).

Before and after creating security tokens, each stage of the STO process involves different parties, including issuers, agents, funds, and exchanges.

First, individuals or companies that intend to issue security tokens will consult with lawyers and accountants, and then authenticate the ownership of assets in accordance with relevant laws through a centralised authority.

Thereafter, individuals or companies will register and tokenize assets on the blockchain through issuing platforms, with KYC and AML processes to be undergone. At last, tokenized assets will be listed on global exchanges and traded by accredited investors, whereby asset  liquidity can be increased.