Honestly, I'm not sure I've heard of LCO before this post, but in my view it is the same as a STO or possibly a SEC "listed" coin offering, opposed to the unregulated ones. But a listed coin offering is only a tokenized security that is going through an IPO. Whereas a STO would just be a record of a security put on the blockchain. Apple stocks have already been put on Ethereum as a tokenized security, its nothing special, just a token representing individual Apple stocks.

This is a great development for securities because currently securities are "stateless" in technical terms, while putting the securities on Ethereum gives them "state" which is better. An article by an Ethereum developer pointed out this key value of stated objects vs. stateless and the value it has for the average person.