Nov 19, 2021
Types of Security Tokens
📊 The security token world is growing exponentially — 2021 may become the year of the security tokens rise
⚡️ The global listed trading volume of security tokens is expected to grow to $162.7tn by 2030, with a total security token issuance worth more than $4tn in the same period.
Stobox highlights such types of Security tokens:
📣 Equity — tokens that represent common shares in companies, thus making tokenholders co-owners of the company;
📣 Preferred Equity — a type of tokens similar to common stock but different in the form of repayment: while common stockholders need to rely on corporate profits, preferred shareholders get guaranteed payments;
📣 Convertible Preferred Equity — a type of hybrid security that functions as preferred equity until it is converted into common stock under certain conditions;
📣 Bonds (debentures) — a security that offers investors the right to guaranteed periodic interest payment and repayment of the body of the investment at a certain date.
📣 Callable Bonds — give the issuer the chance to redeem bond issues early. In return, the buyer gets a bond with a higher coupon rate and likely a higher price upon redemption;
📣 Convertible Bonds — a bond, that is converted into equity under certain conditions;
📣 Fund Units — securities that represent the participation of investors in a collective investment scheme;
📣 Derivative — a financial contract between two or more parties that derives its value from an underlying asset ie., stocks, commodities, or cryptocurrencies;
📣 Revenue Sharing — confer their owners a right to a portion of revenues or fees generated by the business;
📣 Hybrid — have features of a security token, currency token and/or utility token;
👉 Given all the benefits, security, and flexibility that the security token guarantees, it is clear that its adoption will increase dramatically in the coming years.
🚀 Expand your business with Stobox Digital Asset Consulting and get a free 30-minutes consultation — https://stobox.io/digital-assets-consulting