Is 2021 the Year of the Security Token?

Is 2021 the Year of the Security Token?

Security Tokens are Crypto Assets subject to the same rules that are adopted by financial products offered to the public.  In simple terms, they are the intersection of digital assets (Tokens) with traditional financial products. 

It’s a new technology that improves on an old product. 

If Bitcoin is considered a digital currency, then we can consider Security Tokens to be the digital shares of a company. This means that any asset whose ownership entitles to an annuity (asset) can and will be tokenized (shares of public companies, shares of private companies, debt securities, real estate, etc.). 

The European community has a new specific Regulation called MiCA where Security Tokens are defined “Crypto-Assets” here is the Link to preview it:


Why are Security Tokens important? 

Security Tokens bring a number of improvements to traditional financial products by removing the intermediary from investment transactions (usually a banker). 

Removing intermediaries leads to lower fees, faster execution of exchange transactions, exposure to the open market, a larger base of potential investors, automated service functions, and a lack of manipulation by financial institutions.

Lower fees: many fees associated with financial transactions are derived from payments due to intermediaries. 

Competition is an absolute long-term good for financial markets.