The nomenclature for the term “securities token” is unclear and the term securities token has not been defined. The lack of a clearly delineated nomenclature resulted in various uses and interpretations of the term securities token, especially vis-à-vis the term “utility token.” This article helps clarify the nomenclature by first defining the general characteristics of securities tokens and the general characteristics of utility tokens. Thereafter, the article delineates key distinctions between the two categories.
Keywords: Securities Token, Utility Token, Blockchain, Startup, Decentralized Commerce, Emerging Technology, Equity, Distributed Ledger Technology, Blockchain Technology
JEL Classification: K20, K23, K32, L43, L5, O31, O3
Suggested Citation: Kaal, Wulf A., Securities Versus Utility Tokens (January 31, 2022). Available at SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4021599