Primary Issuance

Definition ∞ Primary issuance refers to the initial creation and distribution of new financial instruments, such as stocks, bonds, or digital tokens, directly from the issuer to the first holders. This process typically involves an offering mechanism, like an initial public offering (IPO) for equities or an initial coin offering (ICO) for cryptocurrencies. The primary issuance raises capital for the issuer and introduces new assets into the market. It marks the first stage of an asset’s market life.
Context ∞ In crypto news, primary issuance is frequently discussed in relation to token launches, initial exchange offerings (IEOs), and security token offerings (STOs) by blockchain projects. Reports often cover the regulatory compliance, fundraising success, and distribution models associated with these events. Understanding primary issuance is crucial for assessing the initial valuation and capital formation strategies of new digital asset ventures.