These terms describe different parts of the same process and are closely connected.

Tokenized RWAs are real-world assets (such as funds, bonds, or real estate) that have been represented digitally on blockchain infrastructure.

When these tokenized assets confer ownership, income rights, or other financial claims, they are typically classified as securities under applicable laws. In this form, they are referred to as security tokens.

A Security Token Offering (STO) is the process through which these security tokens are issued and offered to investors.

In the context of the RWA tokenization market, a security token offering (STO) is increasingly referred to as a tokenized RWA offering, reflecting the industry’s shift in terminology.

It is worth noting that the terms used may vary across jurisdictions, regulatory frameworks, and market participants.