STO (security token offering) is an abbreviation for security token offering, which is a contract to invest in an underlying investment asset such as stocks, bonds, mutual funds, and real estate investment trusts. The goal is to connect blockchain technology with the needs of regulated securities markets in order to increase the liquidity of assets while also increasing the availability of funding. STOs are generally the issue of digital tokens in a blockchain ecosystem in the form of regulated securities, with the tokens being traded on the stock market. With the use of automation and smart contracts, the blockchain ecosystem helps achieve the securities regulation objectives of disclosure, fairness, and market integrity, while also fostering innovation and efficiency.