Utility tokens have ‘ one or more specific functions, such as allowing its holder to access or purchase services or assets based on blockchain technology’.
This definition was provided in CSA Staff Notice 46-308 Securities Law Implications for Offerings of Tokens.
Despite the fact that the tokens have one or more utility functions, if an offering of a coin or token involves:
An investment of money
In a common enterprise
With the expectation of profit
To come significantly from the efforts of others
The offering would likely involve an investment contract and will be considered a security under Canadian securities laws.