A digital token that represents ownership in a real-world asset and is subject to securities regulations.
What is a Security Token?
A security token is a blockchain-based digital asset that represents ownership in a regulated, real-world asset such as equity, debt, real estate, or investment funds. Security tokens are subject to securities laws and regulations.
How Security Tokens Work
Assets are tokenized on a blockchain with legal compliance built in. Tokens represent equity shares, debt instruments, or revenue rights. Trading occurs on regulated security token exchanges. Smart contracts can enforce compliance rules automatically.
Why Security Tokens Matter
They bring blockchain efficiency to traditional finance — enabling 24/7 trading, fractional ownership, reduced settlement times, and global investor access while maintaining regulatory compliance.
Summary
Security tokens are regulated digital assets representing ownership of real-world investments, bridging traditional finance with blockchain technology.
