A type of digital asset that is created, issued and managed on a blockchain. Tokens represent various physical or digital assets and can grant holders certain privileges, such as voting rights in a decentralized organization or access to a specific service. They differ from cryptocurrencies because they are built on top of existing blockchain platforms (like Ethereum) and represent a broader range of assets beyond just money.
The token market will be larger than the securities market because, somehow, it will absorb the securities market. All the securities can be tokenized today. The beauty of the token is that you can represent anything and not only securities, which will drive the token’s growth at first.
Etienne Deniau, former Head of Business Strategy, Société Générale Securities Services
In Simpler Terms
Tokens are the digital version of a coupon. They can also be customized for almost any purpose. Some represent physical items in the digital world, like a deed to a piece of land. Others, known as utility tokens, give you access to services, like a subscription token for a streaming service. Think of them as more than digital coins – they’re building blocks of a new, decentralized digital economy.
