What is a security token?

It is typically used as a form of identification for physical access or as a method of computer system access. The token can be an item or a card that displays or contains security information about a user and can be verified by the system. Security tokens can be used in place of, or in addition to, traditional passwords.

What are security token offerings (STOs)?

Security Token Offerings (STOs) are an innovative class of security tokens that represent traditional legal ownership of real-world assets. Security token offerings are a unique blend of digital tokens, security tokens, and conventional equity.

Who can invest in security tokens?

Most security tokens are open to accredited institutional investors and significant individual investors. These tokens trade on special digital security trading platforms, otherwise known as Security Token Exchanges. As of 2022, North American investors have access to four major live security token exchanges, all of them based in the United States.

What is the future of security tokens?

As a result of all these factors, security tokens are expected to grow into a $167 trillion market by 2030. Security tokens have the potential to transform traditional securities markets. Even in this digital age, it takes stock exchanges up to two days to process the sale of shares.