What Is a Utility Token?

In the crypto world, not all tokens are meant to act like money or shares. Some are designed to give you access — to a service, a feature, or a benefit. These are called utility tokens.

In this article, we explain what a utility token is, how it works, and how it differs from coins and other types of tokens like governance tokens or securities.

What is a utility token?

A utility token is a digital asset that provides access to a product, platform, or ecosystem. It is not intended as a currency or investment, but rather as a tool for interaction or usage.

Utility tokens are often used to:

Pay for services within a dApp or ecosystem
Unlock premium features or functionalities
Participate in loyalty programs or gamified experiences
Access staking or fee discounts

How do utility tokens differ from coins?

Coins like BTC or ETH have their own blockchain and are used mainly as currency. Utility tokens usually live on an existing blockchain (like Ethereum or Polygon) and are tied to a specific platform or use case.

They are similar to a digital voucher — valuable only within the specific system they were built for.

Examples of utility tokens

FLTK: The native utility token of Floin, used for staking, rewards, and platform benefits
BNB: Used to pay for discounted trading fees on Binance
BAT: Used to reward users in the Brave browser ecosystem
2D3T: Used within its associated metaverse or app

Are utility tokens investments?

Not by default. Utility tokens are designed for access, not speculation. However, many do trade on exchanges, and demand can influence price — so they sometimes carry value like an asset.

Regulators may treat utility tokens differently from securities, depending on how they’re marketed and used.

Floin Insight

At Floin, we carefully distinguish between token types — especially utility vs. security tokens. Our own FLTK token is structured purely as a utility token, supporting real user benefits like staking, rewards, and access to special features.