A digital security, also known as a security token, is a digital representation of ownership rights in a real-world asset, such as company shares, commodities, or private credit. Digital securities are issued via STOKR as fully compliant transferable securities under MiFID II, the EU capital markets framework.
This guide explains what a digital security is, how it differs from a cryptocurrency, which network STOKR uses for issuance, when digital securities can be transferred, and how AMP wallets, AMP IDs, and Liquid Addresses work together to hold and move them.
How a digital security differs from a cryptocurrency
Cryptocurrencies such as Bitcoin (BTC) are decentralised digital currencies used as a payment method or store of value. Their value is set through peer-to-peer trading, and they function as digital cash.
Digital securities are different in purpose and regulatory treatment. They:
- Represent ownership rights in a real-world asset, not a currency.
- Are regulated under securities law (MiFID II in the EU).
- Are subject to compliance requirements, including KYC/AML checks.
- Are backed by an underlying asset with defined value.
- Carry investor protections through financial regulation.
Both digital securities and cryptocurrencies rely on blockchain infrastructure, but a digital security is a regulated financial instrument, not a form of money.
The network STOKR uses for issuance
All digital securities are issued via STOKR exclusively on the Liquid Network, a Bitcoin sidechain.
The Liquid Network provides:
- Confidential transactions for privacy protection.
- Transfer restrictions that support regulatory compliance.
- Settlement in under two minutes.
- On-chain whitelisting, so only verified investors can hold or receive a given digital security.
To receive digital securities, you need a Liquid Network-compatible wallet, such as SideSwap or Blockstream app, registered during onboarding.
When digital securities can be transferred
Digital securities on the Liquid Network are transfer-restricted: they can only move between wallets whitelisted for that security. Before a transfer can settle, the receiving wallet's AMP ID must be whitelisted for the security by the issuer.
Once the receiving wallet is whitelisted, a digital security can be transferred either over-the-counter (a direct transfer between two whitelisted wallets) or on a secondary market – via SideSwap, or via Bitfinex Securities where the security is listed for trading. Availability depends on the terms of the specific offering.
AMP wallet, AMP ID, and Liquid Address explained
Digital securities issued on the Liquid Network are managed through Blockstream AMP, an asset management platform designed for instruments with transfer restrictions.
- AMP wallet: the wallet application used to hold and manage digital securities issued through Blockstream AMP. SideSwap and Blockstream app are the wallet solutions STOKR supports.
- AMP ID: a unique identifier generated by your AMP wallet when you create an AMP account. It functions like an account number for managing your digital securities and is unique to each wallet.
- Liquid Address: a specific address on the Liquid Network used to send and receive digital securities and other Liquid Network assets. Multiple Liquid Addresses can be derived from a single AMP ID.
Your AMP ID manages the Liquid Addresses associated with it. When you receive a digital security or a payout, STOKR generates a new Liquid Address linked to your AMP ID and sends the asset there.
Protecting access to your AMP wallet
Your AMP wallet is secured by a seed phrase. Anyone with access to that seed phrase can access every digital security and cryptocurrency held across all Liquid Addresses linked to your AMP ID. Keep a secure backup of your seed phrase. If you lose access to your AMP wallet without a backup, the assets held in it cannot be recovered through the wallet itself.
For questions about digital securities or your AMP wallet, submit a request.