A security token represents ownership in a real asset, such as real estate, stocks, or other investments, and is issued on a blockchain. Unlike utility tokens, which are often used for access or services, security tokens are subject to regulations and may provide rights like dividends, profit sharing, or voting.These tokens are often backed by tangible assets, increasing their intrinsic value. They are designed to offer transparency, security, and efficiency in investment transactions, allowing for fractional ownership, meaning investors can buy smaller portions of high-value assets.Investors appreciate security tokens for their compliance with laws, which can provide legal protections. They also facilitate quicker and cheaper transactions by eliminating intermediaries.In summary, security tokens blend the characteristics of traditional securities with the advantages of blockchain technology, making them an attractive option for both issuers and investors.