What is Security Token?

Security tokens are a tokenized stake in the ownership of any asset that has value, such as a business or a piece of real estate, which is recorded in a blockchain ledger. Within the context of corporate ownership, security tokens are analogous to corporate stocks, or fractions/multiples of a stock, and therefore represent an equity stake in a company, along with whatever future returns a partial ownership of that business entails, such as dividend payouts. As a result, security tokens offer a more flexible yet secure way of transferring, exchanging, and storing value.