CFA Level I · CFA Level I Exam · Introduction to Digital Assets
A digital asset is issued on a blockchain and gives its holder a claim on a share of the issuer's profits, similar to a dividend-paying share. This asset is best described as a:
The asset is a security token. Tokens that give holders a claim on an issuer's profits or ownership resemble equity or investment contracts and are treated like securities. Payment tokens serve as a means of exchange, and utility tokens provide access to a platform's services.
- Apayment token
- Bsecurity tokenCorrect
- Cutility token
Explanation
A token that represents ownership or a claim on profits of an enterprise has the characteristics of an investment contract or equity, so it is a security token. Payment tokens act mainly as a medium of exchange, and utility tokens give access to a product or service on a platform.
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