Digital Securities

Digital securities, also known as Security Token are blockchain-based representations of a security.

What distinguishes them from ordinary digital assets is the fact that they are subject to traditional securities laws. This digital ownership is governed by smart contracts.

To learn more about the unique characteristics of digital securities and how security tokens are set-up, evaluated and distributed, see here.

Similar terms

Digital Asset

Digital assets comprise digital representations of values that are accepted by individuals or legal entities as a means of exchange or payment, and/or serve investment purposes. Digital assets can be transferred, stored and traded electronically – e.

Security Token

A security token (also "equity token" or "investment token") is a cryptographic token that is tied to a value or security.

Two-factor Security Token

A two-factor security token grants access to a sensitive network system - e.g., a bank account.

Security Token Offering

A security token offering (STO) describes a public offering of security tokens - i.e. of values, rights or debt relationships (=securities) that are mapped via digital assets.