Like traditional securities, a security token is a financial instrument that represents ownership interest in an asset– only it’s been created digitally, or tokenized, to unlock the power of the blockchain. Put simply: security tokens are digital representations of securities on a blockchain. As with traditional securities, security tokens are subject to regulation and need to conform to strict compliance standards.
So, why tokenize a security? It all comes down to the power of the blockchain. Read on to find out how and learn what the typical tokenization process entails, from ecosystem assembly to token distribution.
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