What Is the Primary Difference between a Security Token and a Tokenized Stock?

A tokenized stock is a derivative that represents ownership of a traditional stock, typically traded on a blockchain and backed by the actual shares held by a regulated custodian. A security token is a broader term for any digital asset that qualifies as a security under financial law, which can include tokenized stocks, tokenized real estate, or digital bonds.

All tokenized stocks are security tokens, but not all security tokens are tokenized stocks.