Bitpanda, a European cryptocurrency platform, has introduced security tokens as a new investment opportunity for its retail investors.
According to the company’s press release from Oct. 10 shared with CryptoNews, Steelcoin is a “regulated, transferable security” under the EU Prospectus Regulation, tracking the value of selected steel products.
Security tokens represent a new asset class that digitizes traditional financial assets like stocks, commodities, or bonds, and are issued and traded on a blockchain. Each token represents ownership or rights in an underlying asset and is protected by the security mechanisms of blockchain technology. As security tokens are classified as digital securities, they are subject to strict legal regulations and securities laws.