utility token
noun
: a digital token of cryptocurrency that is issued in order to fund development of the cryptocurrency and that can be later used to purchase a good or service offered by the issuer of the cryptocurrency
sold utility tokens as a method of fundraising for the start-up
Examples of utility token in a Sentence
Recent Examples on the Web
Token Issuance Rules: Defining legislation and regulatory clarity for stablecoins and utility tokens not classified as securities.
—
Tomer Niv, Forbes.com, 9 July 2025
The strict interpretation of securities laws that follows from Gensler’s school of thought, while intended to protect investors, may have inadvertently pushed cryptocurrency innovation toward meme coins rather than utility tokens.
—Boaz Sobrado, Forbes, 18 Jan. 2025
As a utility token, $ESX provides a mechanism for participation in the platform, not just as an investment vehicle but also as a tool for governance.
—Nick Kasmik, USA TODAY, 23 Aug. 2023
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Tomer Niv, Forbes.com, 9 July 2025
The strict interpretation of securities laws that follows from Gensler’s school of thought, while intended to protect investors, may have inadvertently pushed cryptocurrency innovation toward meme coins rather than utility tokens.
—Boaz Sobrado, Forbes, 18 Jan. 2025
As a utility token, $ESX provides a mechanism for participation in the platform, not just as an investment vehicle but also as a tool for governance.
—Nick Kasmik, USA TODAY, 23 Aug. 2023
Cite this Entry
“Utility token.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/utility%20token. Accessed 7 Sep. 2025.
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