Permissioned blockchains are, of course, nothing new. JPMorgan, Citigroup, Wells Fargo and dozens of other financial institutions already use them, and by all accounts, they function perfectly well as internal, proprietary distributed ledgers. But that doesn’t mean they can support securities that meet the U.S. Securities and Exchange Commission’s Howey Test. While stablecoins, utility tokens and true cryptocurrencies can make the case – successfully or not – that they’re not securities, security tokens are absolutely issued with that intention. There is no fig leaf. They are sold for the purpose of raising capital.