What Is the Role of a Licensed Broker-Dealer in Security Token Offerings (STOs)?

A licensed broker-dealer plays a crucial role in STOs by legally facilitating the sale of security tokens to investors. They ensure compliance with securities laws, conduct due diligence on the issuer, and manage the offering process.

In the US, broker-dealers are necessary to handle the sale of securities, providing a regulated channel for the primary issuance and potentially the secondary trading of security tokens.