Many people are still confused about what STO stands for in a company. Actually, STO is Security Token Offering, so it's not just like some regular digital tokens. It's a structured and legal way of raising funds.

The difference from an ICO is very clear. An ICO issues regular digital tokens whose ownership is often unclear, while an STO issues tokens that truly represent real assets. These can be shares, bonds, or ownership rights in a project. Because of this, STOs must comply with strict regulations like securities laws in each country, such as the SEC in the United States.

In terms of characteristics, STOs have three main points. First, everything is legally organized and subject to government regulations. Second, investors genuinely gain tangible rights, such as dividends or ownership in the project. Third, they use blockchain technology to record and trade tokens, making everything transparent and verified.

For practical use, STOs are often used by startups to raise funds in a more organized manner. Traditional companies are also starting to use STOs to issue their digital securities. Most importantly, STOs provide investment opportunities to individuals in a well-documented and transparent way, not just empty promises. So, the meaning of STO in modern companies now becomes a kind of bridge between the traditional financial world and blockchain technology.