Image source: SteemitIn essence, you can consider Security Token as a bridge between physically-existing assets and the blockchain world. Security Tokens take the record of ownership of the underlying physical asset and uses blockchain-based technology to keep it secure in a digital format; all of this across a large decentralized network. Let’s look at some benefits these Security Tokens offer. Benefits of Security Tokens Compared to owning traditional financial assets, Security tokens offer a large array of benefits. To begin with, there is the ease of trade that comes with these assets. Digital tokens like these can be traded all around the calendar - that is, 24 hours a day, 7 days a week, and 365 days a year. The market for these assets is also global, which allows you to trade your share with anyone around the globe. Once you’ve determined that you’d like to sell your token, the settlement is also instantaneous. Ownership records get changed immediately on the Blockchain. So, there’s no need to wait for t+3 days for the settlement to happen. Furthermore, the blockchain market is truly large and expansive, which opens up numerous funding opportunities for companies that are raising finances. All they need to is tokenize their share and pitch the global community - it’s that simple. They no longer need to localize the offerings to the investors in their region as blockchain offers literally the entire global market. There’s also no need for numerous middlemen and law agents that invariably inflate costs. Security tokens also, undeniably, democratize the entire investing process. Instead of “professional investors” getting access to the best deals of Wall Street, Security Tokens allow an average individual to take part in the investing, albeit however small amounts. Another thing to note about Security Tokens is that they are regulated. Given that they are by definition securities, it implies that the SEC will always have jurisdiction over them. As a result of this, the Security Tokens will be more legitimate than all the current ICO offerings that sell under-the-hood securities.