A security token is the digital representation of a real-world asset – such as shares in a company, a bond or a house. By tokenized we means it is issued on a blockchain and represents ownership, a share in the profits, shareholder rights and legal protection. While physical asset ownership is managed by a transfer agent or issuing platform, digitized shares can be traded freely by accredited investors anywhere in the globe, making ownership much easier and more efficient.
Security tokens can automate cross-jurisdictional compliance, optimize clearing and settlement processes, and ensure compliant registration and other aspects of a regulated transaction, through an immutable, transparent, and secure blockchain ledger accesible from anywhere in the world. Management of cap tables, shareholder alerts, voting, dividend distribution, and auditing all can be simplified.
Added to these advantages is the ability for companies to access new forms of capitalization, both through Security Token Offerings (STO) and through the use of tokenized financial assets as collateral to access credit financing.
Token City is the ultimate bridge to the tokenized economy (tEconomy), in which tokenized companies (tEnterprises) create their cryptoasset markets (tMarkets), open to global investors (tCitizens).