Tag: Utility tokens
Securities: Tokenization In Cryptocurrency
Buying or selling securities or other assets requires a complex, coordinated effort between. As online brokers buy and sell most financial assets, “tokenizing” assets on the blockchain is an appropriate solution for all involved. Corresponding tokens only authorize the holder to operate on the common, decentralized blockchain. Tokens are the digital twin of assets, so to speak.
Different types of tokens
Security tokens offer the holder properties that are comparable to securities or capital. You can use security tokens for investment purposes. In addition, you can use it as assets or membership rights.
Utility tokens enable the holder to access certain services or a platform. These are not suitable as a means of payment, an investment or a corporate certificated right in free circulation. They are only intended for the purchase of certain products from a certain provider.
Currency tokens issued via a blockchain using a smart contract. They specifically use these tokens for financial transactions. It internally represents the monetary unit of a standalone cryptocurrency.