Security tokens are regulated securities on the blockchain, which can be defined as investment contracts, they are also called security tokens. They securitize ownership rights to assets such as stocks, bonds, real estate, bonds, and more. By means of their token form, security tokens can take full advantage of the blockchain by appearing with additional features, including, for example, the availability of global liquidity pools and the creation of entirely new financial products.
The result of this is that security tokens create entirely new investment opportunities and reduce the cost of the capital market for all stakeholders. Here, the real estate market offers itself as a good example of the newly created opportunities: Crypto users can sell only a portion of a property instead of having to sell the entire property. In addition, security tokens, due to the regulatory regime to which securities are subject, are inherently compliant with the law.
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