What Are Security Tokens?
Security tokens are blockchain-based digital assets representing traditional securities, which are fungible and tradable financial instruments that hold value. Relevant examples of securities include company shares and corporate or government bonds.
See Also
Luc FalempinCompanies and government agencies can raise capital by issuing securities to investors. Securities are highly regulated across most jurisdictions. In the US, they must be registered with the Securities and Exchange Commission (SEC).
Security tokens, which utilize blockchain technology, are required to adhere to all applicable legal regulations, as they are recognized as legal securities.
There are three main types of security tokens:
