A security token is a form of cryptocurrency. It represents fractions of assets that have real value such as equity, a company, real estate, etc.

In essence, security tokens owners have a stake in an asset. Owners receive a share from the profits of the asset; like owning stock from the company. Securities tokens live on existing blockchains such as Ethereum for example and don’t have a native blockchain, unlike traditional cryptocurrencies. One well-known security token is Blockchain Capital (BCap).