Token Offerings

Equity tokens act as digital certificates on the blockchain, storing the same contractual information as traditional equity certificates but on a secure, distributed ledger.

Instead of pursuing a conventional IPO, companies can leverage blockchain and smart contracts to issue shares, voting rights, or debt tokens representing company obligations. These tokens can be freely traded in a liquid market environment.

Equity tokens, issued during security token offerings (STOs), reflect ownership in an underlying asset, typically company shares. Token contracts outline rights, such as dividends, voting, subscription, and appraisal rights, similar to traditional share certificates.

Some equity tokens track the value of traditional shares, functioning like crypto derivatives without conferring ownership rights. Regardless, equity tokens always represent underlying assets, distinguishing them from most blockchain coins offered in ICOs.