Security Token

A security token is a digital representation of ownership in a real-world asset, such as equity, debt, or real estate. It is subject to securities regulations, which aim to protect investors by ensuring transparency and compliance. Security tokens are issued on blockchain platforms, providing benefits like fractional ownership and increased liquidity. They facilitate faster and more efficient transactions compared to traditional securities. By tokenizing assets, security tokens allow for easier access to investment opportunities and can reach a broader investor base. They are distinct from utility tokens, which provide access to a product or service rather than ownership.