The difference is quite clear about these two terms. The difference lies in the physical location of the assets. Tokenization of the ownership of the real asset doesn’t mean that the physical location of the asset is shifted physically by which the token is backed.
Securities is referred for assets including currency notes, bonds, treasury stocks, securities futures, options, transferable shares, and investment contracts.
Custodians are the Third-party Service providers that supervise and guard the security tokens representing the legal owners of the digital assets. Custodians thus minimize the risk of thefts or any other loss.
Tokenized real estate asset is the property or a constructed building that issues tokens or digital shares as a representation of the fragmented ownership of that asset to the investors.
Soft Cap and Hard Cap are the goals that are aimed during the fundraising process in STO or ICO projects. The soft cap is the minimum amount of money or lower limit of the amount to be raised and the Hard Cap is the maximum or absolute upper limit of the amount to be raised during fundraising. If the ICO or STO project receives the amount more than the hard cap, the excess funds are returned to the investors. If a project doesn’t reach the soft cap, then the project might be considered as a failure but still, funds are returned sometimes. However, there is an ambiguity in soft cap terms and conditions of ICOs.
An asset-backed token can be a financial instrument or a service or a financial product. Asset-backed tokens are controlled within an accounting system where they are stored, managed and issued by the service provider or by the organization that stores physical goods like banks. Each token represents a fixed amount of goods or services in the 1:1 ratio that is guaranteed by the custodian entity. For example, One token may represent 1 gram of gold, one square meter of a real estate property, or even 1/1000 part of any precious art piece. If the underlying asset is considered a security, the token can be categorized as security token.,