Abstract: A system for securely transferring digital tokens by electronic means includes a secure digital token handling domain and predetermined third parties. The secure digital token handling domain comprises a plurality of tamper-resistant electronic token holders. Each token holder has the ability to process and store information relating to the transfer of digital tokens. The token holders are able to communicate within the digital token handling domain only with other token holders. The token holders are able to communicate outside the digital token handling domain only with the predetermined trusted third parties. One or more of the trusted authorities being responsible for the administration of encryption matters. Communications between token holders within the digital token handling domain, and between token holders and the predetermined third parties involving encrypting and decrypting of messages.