Both cryptocurrencies and digital securities use blockchain technology. Crypto currencies are digital representations of value that can function as a medium of exchange, a unit of account, or a store of value. This is similar to the way gold and fiat currencies such as USD and the Euro are used. Digital securities (also commonly known as security tokens) are considered securities, not currencies, and therefore require registration with the SEC under the U.S. Securities Act.
Digital security ownership functions in a similar fashion to traditional securities, such as stocks and bonds. The owner of a digital security has the opportunity to benefit from the performance of the underlying issuer in the form of dividends, interest payments or capital appreciation, depending on the structure of the digital security.