GlossaryIntermediate
Utility Token
A crypto token intended primarily to grant access to a specific product or service.
A utility token is a crypto token designed primarily to grant access to, or be used within, a specific application or service, rather than functioning primarily as an investment contract.
Whether a token that's marketed as a utility token is actually treated as one by regulators depends on its real structure and how it's actually used and marketed, not just its stated label.
Examples
- A token required to pay for a specific application's services is commonly described as a utility token.
- Calling a token a "utility token" doesn't automatically determine its actual legal classification.