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The security which is provided on the blockchain is called as securities. Many of the convenient businesses have moved towards new technology including finance and stock market. Another name for security tokens are equity tokens, which are regulated by the government in comparison to the utility one. They provide more speed and soothe blockchain to the traditional businesses by ensuring security against any bug or fraudulent activities.

Security Token is Equal to Investment Contract

Assets like four-wheeler, real estate or stocks of organizations—which contain some value. For these assets, security tokens are the bonds (smart contracts) containing fragment of amount. This token ensures the freehold of any strong suit that is stored and secures on the new technology platform. After verification of the proprietorship the people who hold security token can:

 Be beneficial for other investment.

 Be used as an assurance for sanctioning of loan.

 Can be put in distinct pocketbook.