A security token is defined as a digital tool that represents a real-world, physical asset.
The security token, is similar to a coin or currency in that it is valuable, except its value is backed by a real-world asset. In other words, the token could theoretically be traded for a tiny fraction of artwork, a house, jewelry, a house, etc. Coins and cryptocurrency on the other hand are purely digital (created using computers) and don’t represent something physical.