A digital token that represents ownership of a regulated financial asset — such as an interest in a real estate fund, syndication, or REIT — and is subject to applicable securities laws. Security tokens are to be distinguished from utility tokens (which grant access to a product or service) and payment tokens (which function as a medium of exchange). Security tokens issued in connection with real estate offerings must comply with all applicable securities laws, including registration or exemption requirements, transfer restrictions, and investor eligibility rules.
Security Token
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