A security token is a security — a tradable financial asset, like a company share (e.g. Apple) you buy on the NYSE or Euronext — yet in a pure digital form. It represents an actual underlying value, which can be any kind of asset, equity, or debt.

A Security Token Offering (or STO) is a new financing method based on blockchain technology. An STO is best described as a process, in which fractional ownership of equity, debt, or assets is offered in exchange for money. …


In speaking to our clients it became clear that a lot of confusion exists when it comes to the correct denomination of token categories. This is not so strange considering the fact that, at the moment, no universally agreed token classification standard exists. However, we enjoy explaining the different categories to our clients, by looking at the various token generations.

Generation 1: Crypto Currency Tokens

The first generation is the crypto currency token, with Bitcoin being the first and biggest example. It is a token that is used as a general and digital means of exchange, without representing a physical or monetary underlying value. …


In our previous articles, we considered the basics of a security token offering (STO) and the benefits for the token issuer and the token buyer. In this third article, we will touch upon some important legal questions surrounding a STO.

Given the novel nature of STO technology, sometimes it is difficult to know whether certain STO legal questions can fall within the scope of the existing regulatory perimeter, as, in this case, the world is trying to adapt existing laws to new technology.

However, while STO maturity is still dependent on regulatory clarification at a global level, launching a STO…


In our first article in this series of Security Token Offering 101, we elaborated on the basics of the STO principle. In this second article, we will tell you more about the benefits of STO for the token issuer and the token buyer, which again we will illustrate with an example.

Suppose that a real estate project developer is planning the construction of an apartment building for a total budget of 10 million Euro. As explained in our previous article, this project can be financed via STO by issuing for instance 10 million security tokens, each worth 1 Euro and…


A Security Token Offering (or STO) is a new financing method based on blockchain technology. An STO is best described as a process, in which fractional ownership of assets, equity, or debt is offered in exchange for money. It is, to a certain extent, similar to crowdfunding.

Suppose you are dreaming of owning a $100.000 sports car, but your personal wealth does not let you. In that case, you could organize an STO in order to divide the ownership of the sports car into multiple equal parts, each representing, for instance, an amount of $5.000. …

2140 Consulting

Security Token Offering (STO) advisory. Located in Benelux.

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