Definition ∞ Securities issuance is the process by which a company or other entity offers and sells financial instruments, such as stocks or bonds, to raise capital from investors. In the digital asset space, this includes the distribution of security tokens that represent ownership or debt claims. It is a fundamental method for funding operations.
Context ∞ Securities issuance in the digital asset market is a heavily scrutinized area, with regulatory bodies globally determining when a token sale constitutes a securities offering. Compliance with existing securities laws is a significant challenge for many blockchain projects. This impacts their ability to raise capital and operate legally.