Security tokens are digital representations of ownership in an asset, such as real estate or company shares, that are issued on a blockchain. Unlike traditional stocks, security tokens are regulated by government authorities, ensuring compliance with securities laws. This regulation provides investors with legal protections and transparency regarding their investments. These tokens can be traded on specialized platforms, allowing for greater liquidity compared to traditional assets. By using blockchain technology, security tokens can streamline the process of buying, selling, and transferring ownership, making it easier for investors to access and manage their assets.