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A security token is a regulated digital version of an investment. Instead of receiving a paper certificate or a traditional contract, your ownership rights are recorded digitally in a secure and compliant system.
A security token is not crypto and it is not an NFT. It is an official financial instrument that falls under European regulation and provides full investor protection. With a security token, you hold an economic right in a real underlying asset, such as an artwork or collectible, through a legally robust investment structure.
At Rubey, we use security tokens because they are the only digital format that combines legal certainty, transparency, and regulatory oversight. They make fractional ownership of museum-worthy art and iconic collectibles possible in a modern, efficient and investor-friendly way, without adding technical complexity for the user.
A wallet is a personal digital vault that holds your security tokens. It is similar to the way your banking app shows the bank accounts you own, except that this wallet records your ownership of digital securities instead of cash.
At Rubey, we do not offer custodial wallets. Every investor uses their own personal wallet, which is connected directly to their identity through a simple verification process. This approach gives you full control over your own assets and helps prepare investors for the future, where digital wallets will become as common as today’s mobile banking.
Setting up a wallet is very easy and takes only a few minutes. Once it is created and verified, it becomes the legally recognised place where your Rubey security tokens are held. Because the wallet belongs entirely to you, you remain in direct control at all times.
Rubey security tokens can only exist and move between verified, whitelisted wallets. A whitelisted wallet is a wallet that belongs to an identified investor who has completed KYC. This ensures that:
• tokens are always linked to a known, verified person;
• no tokens can be transferred to unverified or unknown addresses;
• ownership is legally clear and compliant at all times.
Requiring every investor to use their own wallet creates a safe, future-proof ecosystem. It also ensures that digital ownership becomes intuitive, accessible and transparent, just like checking your bank accounts today.
If your wallet is the place where your tokens live, then the blockchain is the system that keeps the official record. Think of it as a digital, tamper-proof register that tracks exactly who owns what, at any moment in time.
Rubey uses public blockchains, specifically Ethereum and Polygon. These networks are secure, widely adopted, and ideal for recording digital ownership. When a Rubey security token is created, transferred or redeemed, the blockchain stores that information permanently. It records:
• which wallet owns which tokens
• how many tokens each wallet holds
• every verified transaction between wallets
This register cannot be edited or erased afterwards. It is transparent, reliable and independent, which is why it is perfectly suited for regulated digital securities.
However, Rubey security tokens do not behave like typical crypto tokens. They cannot move freely across the blockchain. They can only be transferred between whitelisted wallets, meaning wallets that belong to verified Rubey investors who have passed KYC.
This whitelisting happens at protocol level. The blockchain itself enforces that a Rubey token:
• can only be sent to an approved identity-linked wallet
• can never be moved to an unverified or unknown address
• always remains tied to a legally recognised investor
This creates a unique combination of openness and safety. The blockchain provides the transparency and immutability. Whitelisted wallets provide the legal certainty and investor protection.
Together, they ensure that Rubey security tokens behave exactly the way regulated investments should: secure, controlled, compliant and transparent, while still benefiting from the efficiency and reliability of blockchain technology.
Digital tokens come in many forms, and they do not all represent the same thing. Most confusion about blockchain starts here. Below is a simple overview of the five main token categories, and how they differ from what Rubey offers.
These are digital tokens that run freely on public blockchains. They have no underlying asset and no link to real-world ownership. Their value is driven entirely by market speculation.
Examples include Bitcoin and Ethereum.
Crypto tokens are not regulated investments.
A utility token gives access to a service or feature inside a digital ecosystem. It is essentially a digital ticket that grants usage rights.
It does not represent ownership in a company, asset or investment product.
Utility tokens are not considered financial instruments.
NFTs (non fungible tokens) are unique digital certificates used to prove ownership of a digital item, such as an image, video or game asset.
They do not carry economic rights or regulated ownership claims.
They are not suitable as investment instruments.
Rubey does not use NFTs.
Stablecoins are digital tokens that act as digital money. They are pegged to a currency like the euro or dollar.
They function as payment instruments, not as investments.
Security tokens are regulated digital securities. They represent economic ownership rights in real underlying assets, such as artworks or collectible cars. They follow financial regulation, require investor verification, and offer legal protection.
Security tokens are the only token type that can be used for compliant fractional investment in real-world assets.
This is exactly why Rubey builds all its investment products on security tokens. They combine the transparency and efficiency of blockchain with the certainty, safety and accountability of traditional regulated finance.
A security token represents your economic rights in a real underlying asset. It is not just a digital marker. It is a legally backed claim recorded on the blockchain, tied to your verified identity, and protected under European financial regulation.
When you hold a Rubey security token, you are not buying a piece of the physical artwork or collectible itself. Instead, you hold a fractional economic right within the regulated investment structure that owns the asset. This right entitles you to participate in the economic performance of that asset, including potential appreciation and proceeds at the moment of sale.
The token functions as your proof of ownership within the fund or single asset structure, and the blockchain ensures that this proof is transparent, verifiable and immutable. Your wallet reflects how many tokens you own, and the blockchain serves as the digital register that confirms it.
In practical terms, your token represents:
• your share of the investment product
• your proportional claim on future economic outcomes
• your place within a fully regulated investment structure
• a transparent, immutable record of your ownership
This makes security tokens fundamentally different from crypto tokens or NFTs. They are real financial assets, backed by real cultural or collectible value, managed by Rubey and its partners, and protected by a regulatory framework designed for investors.
Tokenization is the process of turning a traditional investment structure into a digital one. It does not change what investors own. It changes how their ownership is recorded, verified and transferred. Below is a clear, step by step explanation of how tokenization works at Rubey.
Rubey creates a regulated investment structure, either a Single Asset Product (SAP) or a Multiple Asset Product (MAP). This structure holds the artwork or collectible and defines the economic rights for investors.
All legal documents, investor protections and compliance requirements are set up according to European financial regulation. This ensures the token is recognised as a real, regulated security.
Before anyone can invest, they must pass KYC (Know Your Customer) and identity verification. This ensures that every wallet in the ecosystem is tied to a real, approved investor.
Once the structure is legally in place, Rubey issues digital security tokens that represent fractional economic rights in the underlying asset. Each token is created on a public blockchain (Ethereum or Polygon) and can only exist in whitelisted wallets.
When you invest, your tokens are transferred directly to your own verified wallet, not to a Rubey-controlled account. Your wallet becomes the legally recognised location of your ownership.
Your ownership remains visible and auditable at any time through the blockchain.
Rubey manages the asset, reports to investors and ensures ongoing regulatory compliance.
Rubey security tokens can be traded with other verified investors directly on the Rubey platform. Because all wallets are verified and whitelisted, every transaction remains fully compliant and transparent. This creates an accessible, secure and future oriented secondary market within the Rubey ecosystem.
Security tokens bring the advantages of traditional regulated finance together with the efficiency and transparency of modern digital technology. For investors, this creates a safer, leaner and more accessible way to participate in high quality, real world assets.
Security tokens allow large, museum grade artworks and iconic collectibles to be divided into digital shares. This lowers the entry threshold, making investment opportunities available to both large and smaller investors.
Unlike crypto tokens, security tokens are legally recognised financial instruments.
They follow strict European regulation, include full investor protection and require identity verification. This ensures the safety, accountability and clarity that serious investors expect.
Every token transfer, every holding and every balance is recorded on the blockchain, an immutable digital register. This provides continuous, tamper proof transparency that traditional paper based systems cannot match.
Because Rubey tokens can only move between verified and whitelisted wallets, every transaction remains secure and fully compliant. Investors can buy and sell tokens directly on the Rubey platform without needing any complex tools.
Digital wallets and blockchain based securities will become as normal as mobile banking is today. By working with security tokens now, investors learn to navigate a system that is rapidly becoming the global standard for financial assets.
Security tokens do not represent speculative digital content.
They represent economic rights in tangible cultural assets that carry historical, societal and financial value. This gives investors exposure to categories that are traditionally uncorrelated with financial markets and often show long term appreciation.
