What Is the Difference between a Utility Token and a Security Token in Cryptocurrency?
A utility token grants access to a product or service on a blockchain network, like paying for gas or a platform feature. A security token represents ownership in an underlying asset, such as equity or a share of profits, making it subject to financial regulations like a traditional security.
Glossar
Security Token
Token ⎊ A security token represents ownership or rights to an underlying asset, leveraging blockchain technology to facilitate fractionalization, enhanced liquidity, and programmable compliance.
Utility Token
Network Access ⎊ Utility Token represents a digital asset designed primarily to grant holders access to a specific product or service within a decentralized network, rather than representing a claim on future profits or ownership equity.