A security token offering (STO) is a fundraising method used by companies to issue securities in the form of digital tokens on a blockchain network. Unlike ICOs, STOs are more regulated and legally compliant, as they involve the sale of securities that are subject to federal securities laws. STOs can be used to fund a wide range of projects, from real estate to art collections. They are also considered to be more transparent and trustworthy than ICOs because they must comply with the regulations set forth by the Securities and Exchange Commission (SEC) and other regulatory bodies. STOs typically involve a more extensive legal process than ICOs and can be more expensive to launch.