What are Security Tokens and how are they changing the future of investing?

What are Security Tokens and how are they changing the future of investing?

 

Perhaps you’ve heard about blockchain technology and how it has been disrupting all kinds of industries, from banking to healthcare and everything in between. This technology is also changing the way people make investments worldwide, especially in the real estate industry. This is made possible thanks to the use of security tokens. But what exactly are security tokens, what are the benefits they can bring, and how are they changing the investment world? Read on to find the answers.



What are Security Tokens?

S ecurity tokens are real-world tradable assets that have been digitally represented on a blockchain. Holders of security tokens have legal rights such as voting or debt securities that give them a stake in whatever asset the tokens represent. Security tokens may represent a share in a real estate property, a stake in a company, a share of a corporate bond, or even precious metals like gold and silver. This allows security tokens to combine elements of traditional financial instruments with features of the highly innovative digital world.

As these tokens are deemed a security, they are subject to federal securities and regulations, and must properly meet and follow these regulations to be legally compliant.

Essentially, security tokens act has a bridge between legacy finance and the new digital fintech world, taking benefits from each.

 

What are the Advantages of Security Tokens?

A huge advantage that security tokens provide is that they bring accountability and compliance to the blockchain world, which has been a proverbial Wild West thus far. Scams and shady businesses have been able to run amok with little control by regulators. This all changes with the use of security tokens, however, as enterprises utilizing these tokens legally must comply with governmental regulations. This regulatory framework that governs security tokens results in increased credibility and trust.

Moreover, security tokens allow for the democratization of investment access. Large assets such as real estate have traditionally been an exclusive market to investors with large sums of capital. Security tokens are able to take these large assets and fracture them up into much smaller shares, opening up the investment opportunities to a much larger pool of investors. As security tokens enable crowdsourced investments of real-world assets and lower the minimum required investment, liquidity of the market also increases. It is much easier to buy and sell small fractions of a property as opposed to the entire property.

Thanks to digitizing these assets on a blockchain, investors have global access 24/7 to the security token market. Transparency is increased as all data is verified and tracked on the immutable blockchain, which helps prevent fraud and manipulation.

Finally, security tokens allow a reduction of costs associated with investing, as they reduce the need for intermediaries such as bankers. This also greatly improves efficiency in the investing world. All of these benefits make security tokens a very attractive investment opportunity.
 

Say Hello to CROWDLITOKEN

CROWDLITOKEN is the world’s first security token that combines the advantages of direct and indirect investments in real estate. Tokenholders may tailor their own portfolio by allocating their tokens to the available hand-picked real estate in core-central Europe and choosing the preferred form of profit capitalisation. There is literally no minimum investment and investors may choose to buy using fiat (such as EUR or CHF) or crypto. Investors can expect to see stable growth and solid returns on their real estate investments.

CROWDLITOKEN is regulated and fully compliant to the highest standards, and we are also the very first token with an International Security Identification Number (ISIN), making CROWDLITOKEN ready for use by asset managers in combination with traditional assets as well.

CROWDLITOKEN will provide huge opportunities for those interested in investing in high-quality real estate assets in an easy, flexible, and secure manner. Welcome to the brand new world of digital property investing!
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