Security tokens are a class of digital tokens that represent ownership of an asset, such as equity in a company, debt instruments, or other investment contracts, and are regulated under securities laws. They are designed to provide the benefits of blockchain technology, such as transparency and efficient trading while complying with existing regulatory frameworks. Security tokens typically undergo a thorough verification process and are subject to legal and regulatory requirements, which differentiates them from utility tokens that do not offer entitlement to ownership or profit.