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What Is a Token in Crypto?
In cryptocurrency, a token is a digital asset issued on top of an existing blockchain network, such as Ethereum, BNB Smart Chain, Solana, or Polygon. Unlike native coins, tokens don’t operate on their own independent blockchain. Instead, they are created through smart contracts that rely on the infrastructure and security of an established network.
Tokens can represent a broad variety of purposes or assets, including digital currencies, governance rights, access to services or platforms, and even real-world assets or equity ownership.
Key Features of Crypto Tokens
Built on existing networks: Tokens function on established blockchains rather than running their own.
Smart contract–based: Commonly issued using standards like ERC-20, BEP-20, or SPL.
Programmable: Designed for use in ecosystems such as DeFi, NFTs, DAOs, and GameFi.
Easily transferable: Can be sent, traded, or utilized across compatible wallets and decentralized applications (dApps).
Categories of Crypto Tokens
Utility Tokens – Grant access to specific products or services (e.g., Basic Attention Token, The Graph).
Governance Tokens – Allow holders to vote on protocol decisions (e.g., Uniswap, Compound).
Security Tokens – Represent ownership in tangible assets like stocks or real estate.
Stablecoins – Pegged to stable assets such as the U.S. dollar (e.g., Tether, USD Coin).
NFTs (Non-Fungible Tokens) – Represent unique digital collectibles or assets (e.g., CryptoPunks, Bored Ape Yacht Club).
Common Uses of Tokens in Crypto
1. Payments and Transfers
Stablecoins like USD Coin or Dai are widely used for quick, low-cost transactions across decentralized platforms.
2. Governance Participation
Tokens empower communities to vote on upgrades and protocol decisions, shaping platforms such as Uniswap and Aave.
3. Rewards and Incentives
Many decentralized apps distribute tokens to reward users, encourage liquidity staking, and generate yield within DeFi ecosystems.
4. Asset Tokenization
Tokens can digitally represent ownership of physical or virtual assets, supporting tokenized securities, real estate investments, and in-game assets.
In summary, a crypto token is a versatile and powerful digital instrument that enhances the capabilities of established blockchains. Whether powering decentralized finance, enabling governance, supporting gaming economies, or representing assets, tokens remain a core driver of Web3 innovation.

With talks over U.S. crypto legislation still at a standstill, Jamie Dimon, Chairman and CEO of JPMorgan Chase, said companies offering yield on digital tokens are essentially acting like banks and should be regulated accordingly.
In a 2 March interview with CNBC, Dimon argued that firms “holding balances and paying interest” are functioning as banks and therefore “should be regulated like a bank.” He highlighted what he sees as a regulatory gap, noting that banks must meet strict standards — including FDIC insurance, anti-money laundering rules, and extensive reporting obligations — that many crypto firms do not. “If you want to be a bank, become a bank,” he said, adding that operating under bank laws comes with clear responsibilities.
Dimon cautioned against allowing deposit-like products to exist outside the traditional regulatory framework, warning that easing standards could ultimately harm the public.
Although Dimon famously called Bitcoin a “fraud” in 2017, his stance has moderated as JPMorgan expanded into blockchain and tokenization initiatives. His latest comments mirror concerns from banking trade groups, which argue that letting stablecoin issuers offer rewards could draw deposits away from banks — especially during times of financial stress.
Guardrails, not full bank oversight
Dimon’s remarks come as lawmakers continue debating broader digital asset market structure reforms, even after Congress passed the GENIUS Act to set federal standards for payment stablecoins.
The law requires issuers to fully back tokens one-to-one with cash or short-term U.S. Treasuries, keep reserves segregated, provide regular disclosures, and comply with anti-money laundering and Bank Secrecy Act rules. It also places issuers under federal or state supervision.
However, it stops short of granting them full bank status. Stablecoin firms are not required to obtain FDIC deposit insurance — a point Dimon referenced — nor must they meet the same capital and liquidity standards imposed on major commercial banks.
That distinction lies at the heart of the debate. Banks maintain that once a firm begins offering interest-like returns, it competes directly with insured deposits and should face comparable regulatory scrutiny.
A middle-ground approach
Some crypto companies have opted to pursue banking licenses. Crypto.com and Ripple recently received conditional approval from the Office of the Comptroller of the Currency for national trust bank charters, placing parts of their operations under federal oversight.
Still, a national trust bank differs from a traditional commercial bank, notably because it does not automatically come with federal deposit insurance.
As negotiations remain unresolved, Brad Garlinghouse struck a more optimistic tone on 28 February, saying “the door to a deal is wide open.”
Dimon, meanwhile, emphasized that JPMorgan supports blockchain innovation but insists competition must occur on a level regulatory playing field.

A newly established US Scam Center Strike Force has frozen, confiscated, or initiated forfeiture proceedings on more than $580 million in cryptocurrency connected to cross-border fraud networks, in what authorities describe as one of the most significant coordinated actions yet against crypto-driven “pig butchering” schemes.
Fake trading platforms
According to a Feb. 26 announcement from the United States Attorney’s Office for the District of Columbia, which operates under the United States Department of Justice, the cases center on scam operations largely based in Southeast Asia and allegedly tied to Chinese criminal organizations. The enforcement actions targeted organized groups accused of orchestrating romance and investment frauds that persuaded victims to send digital assets to sham trading platforms.
So-called “pig butchering” scams typically involve fraudsters building trust with targets over weeks or months before steering them into fraudulent crypto investment schemes. In recent years, these operations have spread worldwide, costing victims billions of dollars.
Gaining victims’ trust
“The scammers identify their targets, build trust, and encourage them to invest in legitimate cryptocurrency, only to later deceive them into transferring those funds to fraudulent crypto investment websites and apps,” the US Attorney’s Office said in its statement. Officials also noted that many individuals working inside scam compounds are themselves victims of human trafficking, reportedly detained, abused, and monitored by armed guards.
The Justice Department added that the crackdown was carried out in coordination with the Federal Bureau of Investigation and the United States Secret Service.