Security Tokens

Security Tokens Market Cap Hits $800 million

Claire Millward
finka token blog image

The addition of security tokens to the cryptocurrency and blockchain space has opened up various opportunities within the global market. These new investment opportunities posed by security tokens have interesting implications. 

Security tokens’ ICO counterparts were unregulated and often illegal. Security tokens are designed to tokenize real-world investment opportunities, and are regulated through strict requirements. Classified as securities, issuers need an official approval from the correct instances. Transparency is key for both the offer and what they hope to achieve with the STO. 

Despite the interesting opportunities security tokens might present in the future, the industry is still in the early stages of development, with less than 105 tradable tokens available today. This means that there are not many security tokens in terms of market cap to pay attention to. The STO industry differs from traditional cryptocurrencies, of which there are plenty, but the majority of traditional cryptocurrencies have no true purpose of value. However, security tokens have intrinsic purpose and long-term approach, leading to different incentives for potential investors. 

As the security tokens industry’s market cap has surpassed $800 million, and the goal of surpassing $1 billion remains, the growing interest in these digital security offerings is noted. 

The leaders within the security tokens space, which are the tokens with higher market valuation and capitalization, include Overstock, tZERO, and Blockchain Capital. These three projects have a market cap of over $100 million. There are other projects that are on the list of security tokens, and the options are virtually limitless in terms of the investment opportunities they offer.

Likewise, it is worth noting that some of these tokens can be traded on decentralised exchanges like Uniswap. The options are limited, but the crossover potential for security tokens cannot be disregarded. The next few years will show precisely the capacity this industry has.