Security token represents complete or fractional ownership in an asset (such as shares in a company, a real-estate asset, artwork, etc). Having a stake in a company, real estate, or intellectual property can all be represented by security token. Security token offers the benefit of bringing significant transparency over traditional paper shares through the use of the blockchain and its associated public ledger. Security token structure, distribution, or changes that could affect investors are now accessible to all via the blockchain.
A Security Token shares many of the characteristics of both fungible (erc20) and non-fungible tokens (erc721). Security tokens are designed to represent complete or fractional ownership interests in assets and/or entities. While utility tokens have no limitations on who can send or receive the token, security tokens are subject to many restrictions based on identity, jurisdiction, and asset category.
Chaineum is building an ecosystem of financial products and services based on private distributed ledger technology, which will revolutionize the creation, management, safeguarding and settlement of new financial products and digital assets for institutional, corporate, intermediary and individual clients.