How tokenization is different from Securitization?

[Ana_crypto]

Tokenization is the process of turning things into digital assets. Is this same as Securitization? How these 2 are different from each other?

Also, I came across STOs. How this is related to Tokenization?

Anyone please explain me, I am new to all these things.

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[Upgrade00]

AFAIK Tokenization would be the process of converting a stock or asset into a token, and transferring it's value to that token. It is a was of transferring an asset to the blockchain
STOs are used for security tokens, which are regulated by financial bodies, such as SEC. While, ICOs are used to introduce utility tokens into the market.
I also found this thread which contains discussion on this topic

[squatter]

Tokenization is the process of turning things into digital assets. Is this same as Securitization? How these 2 are different from each other?

Also, I came across STOs. How this is related to Tokenization?

Anyone please explain me, I am new to all these things.

There is some confusion between the terms "securitization" and "security."

STOs are security token offerings. They are blockchain tokens that represent securities -- in this case, equity securities that constitute equity ownership in the issuing company. Basically, they are issuing and selling company stock just like a company would in an IPO.

Securitization refers to something different. It's about pooling together different assets (like debts) and packaging them into tradable financial instruments. You can read about securitization here.