Security token, What does it mean?

Security token is a term used in the cryptocurrencies field. It is key to understand it in order to fully understand this world

Definition of Security token

A security token is a token providing digital ownership (or reprensentation) of a financial security (equity/debt/gold/etc.). It is a blockchain in which tokens are backed by securities, hence they can be considered stable. Security tokens are fungible and can be exchange via exchanges as any other tokens or cryptocurrencies and usually follows the trend of the traditional security they are backed to.

Security token is related to

Utility tokenTokenCoinMeme coin

See more: Cryptonyms glossary