Digital securities, or security tokens, represent digitized real-world assets or financial instruments, such as stocks, bonds, or real estate. These tokens are issued and managed on a blockchain like the Liquid Network and are subject to financial regulations and often give investors rights, such as dividends, profit sharing, or voting.
By digitizing (tokenizing) assets, digital securities can offer increased liquidity, fractional ownership, and reduced costs, making the investment process more efficient and accessible for a broader range of investors. Because many assets are not accessible through public markets, tokenization may broaden the range of assets investors can reach.
Digital securities offerings (DSOs) or security token offerings (STOs) provide many of the benefits of ICOs but with clearly defined issuer obligations, investor rights, and regulatory oversight.
