Oddity Tech Ltd., a New York-based online beauty retailer, will offer investors a new type of security that combines traditional equities with the digital infrastructure behind cryptocurrencies.

Oddity, which sells products through its Il Makiage and SpoiledChild brands, offers what it calls a security token. The token will be converted into a share in an eventual IPO at a 20% discount on the IPO price. The company said the proceeds will be used for general corporate purposes.

Unlike other tokens, however, Oddity tokens will not be tradable once issued, the company said, a condition that will be programmed into the contracts that govern them. That means investors would have to wait for the IPO to sell and take profits.

Security tokens are assets that are created and traded in the same way as bitcoin and cryptocurrencies as they exist entirely on digital platforms. The difference is that they are offered as regulated assets…

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