securitytokens
Security tokens are digital representations of ownership or entitlement to traditional assets, such as equity, debt, real estate, or commodities, issued and traded on a blockchain. They combine the rights of securities with the programmability and settlement features of distributed ledger technology. Unlike utility tokens, security tokens are typically subject to securities laws and investor protections.
Tokenization and mechanics involve creating digital tokens that represent proportional ownership or entitlement to an asset.
Regulatory landscape and compliance vary by jurisdiction but generally treat security tokens as securities. In the
Benefits and challenges: Security tokens can enable fractional ownership, broaden access to historically illiquid assets, automate
Use cases and examples include tokenized real estate, private equity, corporate debt, and art. Providers range