What is a "security token"?

Article author
Arnab Naskar
  • Updated

A token is a unit value that exists on an existing blockchain like Bitcoin or Ethereum. Tokens do not have their own blockchain, they only exist on one.

Security tokens issued on STOKR are transferable securities under MiFID II (EU capital market laws).

On the Ethereum blockchain, these security tokens are issued as per the STOKR Framework; a smart contract framework compatible with the ERC 20 standard. Click here for more details. 

STOKR also supports the issuance of these security tokens on the Liquid Securities Network. Liquid Securities Network is recommended for confidential transactions. Liquid Securities ensure transaction finality under two minutes. Improved efficiency and enhanced security are two big benefits of the Liquid Securities Network. Click here for more details. 

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