Security token

A security token is a digital token representing ownership or rights to real-world assets such as company shares, real estate, or bonds. Unlike utility tokens, which provide access to services or ecosystems, security tokens are classified as securities and are subject to financial regulations, such as those enforced by the U.S. SEC or European ESMA.

Using blockchain technology, security tokens enable fast and transparent transactions without intermediaries, increasing liquidity and investment accessibility. They may also offer dividends, voting rights, or other benefits associated with traditional financial assets. However, due to regulatory requirements, their issuance and trading are more complex than other tokens, which may slow down adoption.