What are security tokens?

Imagine a share of stock, a bond, or any other financial instrument existing not as a piece of paper but as a digital unit on a blockchain. That's essentially the concept behind a security token. It's a digital representation of ownership or rights to an underlying asset, secured by the power of blockchain technology.

How are security tokens different?

Security tokens offer several advantages over traditional investments:

• Increased efficiency: Transactions can be settled faster and more securely on a blockchain compared to traditional methods.
  
  
• Fractional ownership: Security tokens can be easily divided into smaller units, making them accessible to a wider range of investors.
  
  
• Transparency: The entire transaction history of a security token is visible on the blockchain, promoting transparency and trust.

Security tokens present opportunities for fractional ownership and enhanced liquidity in asset classes that have traditionally been less accessible. However, it is important to note that this market is still emerging. As with any developing technology, factors such as trading volume and the evolution of underlying blockchain systems may influence the investor experience.

Steelcoin: The first security token for steel

A new example of a security token is Steelcoin, the first security token to bring steel to the Ethereum blockchain. As a regulated, transferable security under the EU Prospectus Regulation, Steelcoin is linked to the value of specific steel products, offering investors a unique opportunity to participate in the performance of steel prices. Essential for industry, economy and society, steel shapes our world. Steelcoin is issued in Austria and closely cooperates with the steel trading group Frankstahl.

Here's what makes Steelcoin unique:

• Investing in steel: Steelcoin offers investors a chance to participate in the steel market, a crucial sector for global infrastructure.
  
  
• Backed by expert knowledge: Steelcoin cooperates closely with the European steel trading group Frankstahl.
  
  
• Regulated offering: Steelcoin complies with the EU Prospectus Regulation, ensuring investor protection.