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The owner of beauty brand Il Makiage, Oddity, has launched a digital security token — the Oddity Token — on the Ethereum blockchain.

Security tokens allow private companies to raise money before an IPO, potentially improving fundraising opportunities for companies by allowing them to get investment pre-IPO.

The move marks one of the first times a company which is not focused on cryptocurrency has linked its equity ownership to a blockchain-centered security.

“By offering this trailblazing token, we are democratizing investor opportunity by broadening individual access to Oddity securities, as we continue to disrupt and redefine the beauty and wellness category,” said Oran Holtzman, the company's co-founder and CEO.

Oddity is using Securitize, which is registered with the SEC, to issue its token.

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Digital security tokens offer an avenue for greater crypto adoption, by offering a bridge from traditional markets to cryptocurrencies. With so much of the crypto industry still unregulated, security tokens are a regulated asset similar to bonds or stocks, even though they're created and traded like cryptocurrencies.

“Crypto and blockchain technology unlock massive opportunity for consumers and capital markets," Holtzman said. "With this offering, we are building a new bridge to link traditional markets with the vibrant world of digital assets, where the innovation potential is huge."

This past January, Oddity raised $130 million and now has a valuation of $1.5 billion. It is speculated that the company may go public soon.

If Oddity gets an IPO, the token will automatically change to stock shares offering a 20% discount on the IPO price. Oddity will also get funding from more than just venture capitalists; it'll also receive money from accredited investors, who either have a net worth of $1 million or offer $200,000 a year.

However, trading the token will not be possible until the IPO.