Security Token Offering (STO): a paradigm shift in global fundraising markets. How Blockchain technology might disrupt the traditional Initial Public Offering?

Details

Supervisors

Lambrecht, Philippe

Faculty

Louvain School of Management

Degree label

Master [120] en sciences de gestion

Abstract

The financial industry is one of the most impacted by blockchain-based innovations. In global fundraising markets, blockchain technology has enabled the investment industry to cross the point of no return towards a profound transformation of the traditional workflow, giving the rise of Security Token Offerings (STOs). Although STOs are in their early days, as the technology continues to progress, more and more companies and institutions, not only blockchain-related, are thinking about how they can tokenize their assets to raise funds. The purpose of this thesis is twofold. It aims, on the one hand, to understand a complex subject and characterize the issues it raises in the investment industry. On the other hand, it also attempts to determine if the STO will constitute a future alternative or even replace the traditional IPO fundraising process, by considering the challenges related to regulations, political decisions, and investor behavior. In the light of the literature review and the empirical analysis, this thesis has come to the conclusion that the STO will mark an evolution in the timeframe for fundraising, adding new opportunities for startups and large companies alike. The financial market will become a hybrid in which traditional instruments and tokenized securities will coexist, and investment opportunities and the search for liquidity will be more accessible.