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Put another way: What's the difference between an STO vs an ETF.
In theory great, in practice won't really get the benefits people are dreaming of until securities law regulations change accordingly. In the US this will do nothing as the laws are already so strict and these would follow them. If you could however issue the assets offshore, trade them offshore and custody them offshore.... Then maybe.
But yes, most STO projects seem to exclude US traders due to potential repercussions from SEC rulings.
I’m talking to a potential client about making a blockchain for them along these lines. It’s interesting but I don’t know if they really have the legalities fully sorted out.
Seems a bit challenging to associate trustless coins on a blockchain with ownership and dividends etc. that are essentially paid from a centralized, trusted source.