Security Tokens — Three Types You Should Know Of
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Security Tokens — Three Types You Should Know OfSimilar to traditional security, a security token performs the same function except that it confirms ownership through blockchain transactions and also make fractional ownership possible. Federal laws that govern securities also apply to Security tokens with the intention of protecting investors on some levels. Security tokens are programmable. Tokenizing securities, in theory, remove the need of a third party by using smart contracts. For example, a loan “tokenized” on a blockchain could automatically make payments without the use of a traditional middleman like a bank. We discussed deeper on the various regulatory requirements around security tokens previously on Hackernoon.Security Token Offerings (STOs) — What You Need To KnowOriginally, (...)
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