What are security tokens?
Security tokens are digital assets that represent ownership or control of a physical asset, such as real estate, a company, or a commodity. They are issued on a blockchain network such as Polygon and are used to facilitate transactions and provide access to different services.
Security tokens such as EGX offer advantages compared to the assets they represent or other digital assets, for example:
Security. They are more secure, due to the immutability of the blockchain and its ability to store data in a decentralised manner. This makes them harder to misappropriate or manipulate.
Fractionalisation. Security tokens can represent fractions of the value of the assets they represent. The ability to fractionalise an asset, and for portions of a security token to be bought and sold, is a key advantage of tokenisation.
Transparency. Security tokens are more transparent. All transactions are recorded on the blockchain, meaning that users can track them and verify their authenticity. This makes them more reliable and trustworthy than traditional assets.
Liquidity. Security tokens are often more liquid than traditional assets. They can be easily and quickly traded on exchanges, allowing investors to buy and sell them quickly and easily. This makes it easier for investors to enter or exit the market.
Programability. As Security tokens are essentially defined by software, they can be programmed to interact with the world and certain triggers. For example, to ensure that every transfer is compliant.
Compliance. Unlike other digital assets such as cryptocurrencies, security tokens are regulated. Issuers of security tokens must comply with the relevant securities regulations.
Overall, security tokens offer a number of benefits to investors and issuers alike, making them an attractive option for those looking to invest in digital assets, which is why Enegra chose to tokenise our equity into EGX over a traditional exchange listing.
Security tokens such as EGX offer advantages compared to the assets they represent or other digital assets, for example:
Security. They are more secure, due to the immutability of the blockchain and its ability to store data in a decentralised manner. This makes them harder to misappropriate or manipulate.
Fractionalisation. Security tokens can represent fractions of the value of the assets they represent. The ability to fractionalise an asset, and for portions of a security token to be bought and sold, is a key advantage of tokenisation.
Transparency. Security tokens are more transparent. All transactions are recorded on the blockchain, meaning that users can track them and verify their authenticity. This makes them more reliable and trustworthy than traditional assets.
Liquidity. Security tokens are often more liquid than traditional assets. They can be easily and quickly traded on exchanges, allowing investors to buy and sell them quickly and easily. This makes it easier for investors to enter or exit the market.
Programability. As Security tokens are essentially defined by software, they can be programmed to interact with the world and certain triggers. For example, to ensure that every transfer is compliant.
Compliance. Unlike other digital assets such as cryptocurrencies, security tokens are regulated. Issuers of security tokens must comply with the relevant securities regulations.
Overall, security tokens offer a number of benefits to investors and issuers alike, making them an attractive option for those looking to invest in digital assets, which is why Enegra chose to tokenise our equity into EGX over a traditional exchange listing.
Updated on: 23/08/2023
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