Security Token
A Security Token is a digital representation of ownership in an asset, typically backed by real-world assets like stocks, bonds, or real estate. These tokens are issued on a blockchain, ensuring transparency and security. They comply with regulatory standards, making them a legal form of investment.
Investors can trade security tokens on various platforms, similar to traditional securities. By using blockchain technology, security tokens offer benefits such as faster transactions, lower costs, and increased accessibility. This innovation is part of the broader trend of tokenization, which aims to make investing more efficient and inclusive.