Security Token

Security tokens are cryptoassets that constitute securities according to established legal frameworks, including the Howey Test in the United States, and are registered with the appropriate regulators. Security tokens are typically cryptoassets that either act as securities or represent ownership of a real-world security, such as an equity share or an income share agreement. Crucially, this term refers only to self-declared and registered securities rather than tokens not initially marketed as securities by issuers but later determined to be unregistered securities by regulators.