Digital Security Issuance

Definition ∞ Digital security issuance refers to the process of creating and distributing financial securities in a digital format, often utilizing blockchain technology. This involves representing ownership rights or claims as tokens on a distributed ledger. The issuance can streamline administrative tasks and potentially broaden investor access. It offers a method for democratizing access to various asset classes.
Context ∞ The landscape of digital security issuance is expanding as more traditional financial assets are tokenized. Regulatory bodies are working to define appropriate legal and compliance standards for these digital offerings. News often covers initial coin offerings (ICOs) and security token offerings (STOs), examining their role in capital formation and market liquidity within the digital asset economy.