Digital Assets and Security Tokens

Expert advice on digital assets, security tokens, issuance, minting, non-fungible tokens and token standards.

What’s the difference?

Both digital assets and security tokens are assets represented on distributed ledgers like a blockchain.

The difference is that a “security token” is a digital representation of a security which is subject to traditional securities laws. This will involve compliance with KYC (know your customer) and AML (anti-money laundering) laws. Security tokens could be a share of a corporation, a debt security like a bond or ownership of real estate to name some examples.

A large benefit of security tokens is the ability to easily fractionalize ownership while making those investments liquid compared to current offerings.

Digital assets are digital representations of something of value which are not securities. This could be currency or digital items in an online game.

You’ll also hear about fungible vs non-fungible tokens (or NFTs). These can apply to both security tokens and digital assets. NFTs are unique assets whereas a fungible token is interchangable and may be fractionalized. A simple example of a fungible asset is currency, a $100 note is equal to any other $100 note. Examples of NFTs are items in an online game or a real estate land title.

If you would like to know more about security tokens, I spoke on the Decrypting Crypto Podcast about on how security tokens are going to shape the future of private investments over the coming years and how to bridge the “off-chain” and “on-chain” worlds. You can learn more about the episode at thecoinoffering.com or listen to it on Apple Podcasts or Spotify.

How we can help you

Token Standards

Should you use ERC-20, ERC-721, ERC-1155, ERC-1400, ERC-1404, ST-20, R-Token or something else? Do you need to ensure KYC/AML procedures are followed? Do you need to add custom functionality to your smart contracts? We can answer all of your questions.

Smart Contract Design

Unclear on how smart contracts will map to the intended functionality? We can help you identify these gaps in the beginning and save you a lot of time and money.

Development Partners

Need development partners you can trust or to make build vs buy decisions for functionality like token minting and issuance? We have you covered.

Regulation and Legal

We can assist you with clear technical explanations for regulators and your legal department.

Monitoring and Analytics

We can provide monitoring and analytics solutions so you can track the activity of your smart contracts and see the movement of your tokens.

Where are you at now?

Which of the following options best describes your situation?

The Ideas Phase

Do you have a blockchain idea and don't know where to go with it? Do you need a CTO? Do you need to know if it's possible? What technology to use, the best token standards, what team is required to build it and finding a development team you can trust?

Startup Looking to Raise or Grow

Do you need to move to the next phase? Do you need to figure out a roadmap, the development team, how much it's going to cost, what to build and what a development cycle and process would look like?

Existing Business Looking to Pivot

Do you have an existing business and are now looking to adopt or pivot to blockchain? Do you need to know if it's feasable? Do you need a deep dive into how your business model maps to blockchain technology?

Large Company Looking to Adopt Blockchain

Do you need to figure out a blockchain strategy? Do you need to get buy-in from stakeholders? Do you need to talk to regulators and lawyers about the technical implications? 

Need something specific or want to know more?

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