Explain How a Company Could Use Tokenized Assets to Manage Foreign Exchange Risk

A company with international operations can issue tokens pegged to a basket of currencies or to its foreign-denominated revenue streams. By selling these tokens, the company locks in a future exchange rate for a portion of its foreign income.

Alternatively, the company can use tokenized stablecoins that track foreign currencies to denominate contracts, eliminating the need to hold the volatile foreign currency itself, thereby mitigating FX risk.