Asset-Backed Token
Definition
What is Asset-Backed Token?
A token whose value or redemptionThe process of selling fund units back to the fund in exchange for cash. claim is linked to off-chain or on-chain assets.
Example in practice
How This Looks in Practice
A token represents allocated goldGold held as specifically identified bars owned by the investor. held by a custodianA licensed institution that safeguards a fund's cash and securities separately from the manager's own assets..
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Related Terms
Cryptocurrency
A digitally represented asset that uses cryptographic and distributed-ledger systems for issuance or transfer.
Digital AssetsDigital Asset
An electronically represented item of value or right that can be owned or transferred.
Digital AssetsBlockchain
A distributed record of transactions grouped into linked blocks and maintained by a network.
CommoditiesPrecious Metal
A scarce metal commonly held for industrial use, jewellery, or investment.