Security Token
/ˈsɪkjʊrɪti ˈtoʊkən/
Definitions
- (n.) A digital or physical token representing ownership of a security or investment contract, regulated as a financial instrument.
The investor received a security token representing shares in the company.
- (n.) An authentication device used to verify identity and access rights, often in cybersecurity contexts.
Access to secure systems requires a security token for authentication.
Forms
- security tokens
Related terms
See also
Commentary
In legal contexts, 'security token' primarily denotes a regulated financial instrument conveying ownership rights; clarification is needed to distinguish from authentication tokens used in cybersecurity.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.