This is a method of fundraising used by cryptocurrency companies to issue tokens that act like financial securities, such shares of equity or debt. This is often seen as an alternative to the ICO and allows companies to raise capital in a more regulatory compliant manner.

Oddity Tech Ltd Launches Security Token Offering to Democratize Investing
Oddity is innovating its offerings to keep up with the changing users’ expectations.
The Nascent Primary Market of Security Token Offerings
Now that the ICO market bubble ebbed away security token offerings (STOs) have emerged, allowing investment in regulated securities recorded on a blockchain according to new research from the Oxford Faculty of Law

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