Security Token

« Back to Glossary Index

The term securities refer to the fungible and tradable financial instrument that bears a type of monetary value. Essentially a security token is a digital form of the traditional securities. The examples of securities include bonds, stocks, options, ETFs and futures. Hypothetically, any of these things can be tokenized in order to become a security token.

This means a Cryptocurrency that is held by an asset such as real estate, gold, etc. For a security test, there has to be a Howey test. This allows one asset to get split into different users. The  initial stage for this is STO (“Security Token Offering”) and is considered a much safer option than ICOs.  

« Back to Glossary Index

Check Also


7 Best VPN For Streaming: Enjoy Your Shows From Anywhere

Isn’t it frustrating when you just want to kick back and watch your favorite shows …