What are Tokenized Securities and Why They Matter


... “Digital securities provide an array of different financial rights to an investor such as equity, dividends, profit share rights, voting rights, buy-back rights and more,” said Kevin Hobbs, CEO of Vanbex Labs. “Security digitization is the process of materializing any of the above financial rights in security through the issuance of a digital asset registered on the blockchain.”

Security tokens stand out on many fronts, compared to IPOs or private investing. Unlike IPOs which require an arduous and expensive process with many middlemen and brokers, STOs are easy to pull off. The security tokens can be broken down and represent fractions of an asset, at sizes suitable for any investor. And unlike private investing, where investors need to wait many years until they see returns, security tokens are immediately tradable. As such, they are extremely more liquid...