Security Tokens | Mimi Bebe

Security tokens are digital representations of real-world assets, such as equity, debt, or real estate, recorded on a blockchain. Unlike utility tokens, which grant access to a product or service, security tokens are subject to securities regulations in most jurisdictions. They offer potential benefits like increased liquidity for traditionally illiquid assets, fractional ownership, and automated compliance through smart contracts. However, the regulatory landscape remains complex and evolving, posing challenges for issuers and investors alike. Understanding the legal framework and the specific rights attached to a security token is paramount before engaging with this asset class.