Security Token Offerings (Stos) In The Cayman Islands

An increasing number of businesses are concluding that a security token offering (STO) is now the preferred approach to raise funds for their project, product or platform. Whereas a traditional initial coin offering (ICO) seeks to raise funds through the issue of a non-asset backed cryptocurrency or digital token which is designed to be utilised in an ecosystem or platform, an STO typically links tokens to either profits, assets or both (referred to herein as a Security Token). As an STO therefore offers a token with the promise of a return as opposed to the promise of utility, many consumers are now looking to Security Tokens for their digital investments – a trend that has not been lost on those businesses competing or starting out in the blockchain space.