A security token is a digital representation of ownership or investment in a real-world asset, such as equity in a company, debt obligations, real estate, or commodities. Unlike utility tokens or cryptocurrencies, security tokens are subject to securities regulations and derive their value from the underlying asset. Security Token Development involves issuing these tokens on a blockchain or distributed ledger technology (DLT) platform, where they are traded and managed. Security tokens work by digitizing ownership rights, enabling fractional ownership, and providing a transparent and immutable record of ownership and transactions on the blockchain. Smart contracts govern the issuance, transfer, and redemption of security tokens, ensuring compliance with regulatory requirements such as Know Your Customer (KYC), Anti-Money Laundering (AML), and securities laws. Investors can buy, sell, and trade security tokens on compliant trading platforms, unlocking liquidity and creating new opportunities for asset ownership and investment.
A security token is a digital representation of ownership or investment in a real-world asset, such as equity in a company, debt obligations, real estate, or commodities. Unlike utility tokens or cryptocurrencies, security tokens are subject to securities regulations and derive their value from the underlying asset. Security Token Development involves issuing these tokens on a blockchain or distributed ledger technology (DLT) platform, where they are traded and managed. Security tokens work by digitizing ownership rights, enabling fractional ownership, and providing a transparent and immutable record of ownership and transactions on the blockchain. Smart contracts govern the issuance, transfer, and redemption of security tokens, ensuring compliance with regulatory requirements such as Know Your Customer (KYC), Anti-Money Laundering (AML), and securities laws. Investors can buy, sell, and trade security tokens on compliant trading platforms, unlocking liquidity and creating new opportunities for asset ownership and investment.