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What is a security token? Everything you need to know

Written by Polymath | Jan 26, 2023 3:19:20 PM

This article discusses the growth and development of security tokens, which are a type of digital asset that represent ownership in a real-world asset. In the first ten months of 2019, 380 token offerings raised a total of $4.1 billion and that established financial institutions conducted over $4.2 billion of corporate directly-issued security token offerings between 2017 and 2019. Despite some barriers, such as identity, governance, and compliance, investors, institutions, and regulators are starting to take notice of security tokens. Security tokens can be used to reduce management costs and increase operational efficiency in green bonds and tokenization of commercial real estate can shift traditionally illiquid markets.

What is a security token? Everything you need to know