i. Payment tokens (Exchange tokens): Payment tokens (synonymous with cryptocurrencies) are virtual currencies which are intended to be used, now or in the future, as a means of payment for acquiring goods or services or as a means of money or value transfer. Payment tokens give rise to no claims on their issuer and are usually decentralised. The most prominent example is Bitcoin.
ii. Utility tokens: Utility tokens are tokens that are intended to provide access to a specific application or service but are not accepted as a means of payment for other applications.
iii. Asset tokens: Asset tokens represent assets such as a debt or equity claim on the issuer. Asset tokens promise, for example, a share in future company earnings or future capital flows. In terms of their economic function, therefore, these tokens are analogous to equities, bonds or derivatives. Tokens which enable physical assets to be traded on the blockchain also fall into this category.
iv. Hybrid Tokens: Hybrid tokens are those that have features of one or more of the other three types of tokens.
Added: April 2019