By Matthew Sullivan, CEO of QuantmRE

With the SEC promising to issue “plain English” guidance on security token analysis and the industry waiting for the first SEC-approved security token offering (STO), could 2019 be the year that security tokens become the fundraising tool of choice?

Security token offerings are well on their way to becoming a secure and stable method of fundraising. Last year as the number of initial coin offerings (ICOs) began to taper off, STOs were already taking over as an acceptable way of raising money.

Unlike utility tokens, where there are normally few (if any) rights accruing to the token holder, security tokens can offer investors ownership over a company’s tangible assets in a similar way to stocks and bonds, and they can represent the right to receive dividends, profits and voting rights.