The term “securities” is a commonly used term to describe a tradable financial asset. But did you know that SolidBlock has introduced a new term – known as tokens – to the finance world? So what are these tokens and how are they similar and different from securities? Yael Tamar, SolidBlock’s CMO and co-founder, gives a brief explanation that will clarify it all.
A security represents a share in a financial asset, for example, a company, which can be traded in the stock markets. Yet now, SolidBlock’s ground-braking technology has introduced the term “token” to represent a share in a tangible, real-world asset.
As Yael explains, the biggest difference between securitization and tokenization is the fact that the latter is a combination of both securitization and digitization. Digitization is the process where a token is placed on the blockchain and can now be traded on it, allowing to track who owns the security. Tokenization brings with it many benefits and if you want to learn how it can benefit your business too, contact us HERE to speak with one of our executives.