Security tokens are digital assets that represent ownership or rights to underlying assets, such as stocks, real estate, or commodities. These tokens are designed to provide a secure and efficient way for investors to access and trade various assets, while also providing issuers with a compliant and transparent way to raise capital.

Some of the main uses of security tokens include facilitating fractional ownership of assets, enabling peer-to-peer trading without intermediaries, increasing the liquidity of traditionally illiquid assets, and providing investors with greater transparency and control over their investments.

Security tokens also offer enhanced security and privacy features, such as built-in KYC and AML compliance, as well as the ability to automate compliance requirements, which can help reduce regulatory and operational costs for issuers.