What Is a ‘Non-Fungible Token’ (NFT) and How Does It Differ from a ‘Security Token’?

An NFT is a unique, indivisible digital asset that proves ownership of a specific item, often art or collectibles. A Security Token, conversely, is a fungible, tradable financial asset representing ownership or rights in an underlying investment.

The key difference is fungibility (interchangeability) and the underlying asset's nature (unique item vs. financial security).