Clifford Chance

Security Token Offerings - a European perspective on regulation

19 October 2020

Security token offerings, the issuance of digital tokens using blockchain or distributed ledger technology, are increasingly being seen as an alternative to mainstream debt and equity fundraisings. An evolution of the (supposedly) unregulated initial coin offerings or ICOs, security token offerings or STOs are typically structured to sit within securities law frameworks. This means much greater certainty for both fundraisers and investors, resulting in enhanced liquidity. In this report we consider how STOs are structured and some of the benefits and challenges, and explore the evolving regulatory landscape for STOs across Europe.

This is the first in a series of reports we plan to publish over the coming months, covering STO regulation in other regions such as the US, Asia and Middle East. In the meantime, please get in touch with a member of our Fintech team should you wish to discuss any of the issues raised in further detail.

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