How Is the Value of a Tokenized Physical Asset Maintained? ⎊ Path

How Is the Value of a Tokenized Physical Asset Maintained?

The value is maintained by a legal framework that guarantees the token holder's ownership claim over the underlying physical asset, which is typically held by a custodian. Audits and transparent reporting ensure the asset exists and is not double-pledged.

The token's value is directly derived from the market value of the physical asset it represents, minus any management fees.

What Is a ‘Custodial Wallet’ versus a ‘Non-Custodial Wallet’?

What Is the Difference between a ‘Custodial’ and a ‘Non-Custodial’ Prime Brokerage Model?

What Is the Difference between a Custodial and Non-Custodial Derivatives Exchange?

What Is the Purpose of the Proposed MiCA Regulation in the EU regarding Stablecoins?

What Regulatory Differences Exist for Custodial and Non-Custodial Derivatives Exchanges?

Explain the Difference between Custodial and Non-Custodial Collateral Management in Stablecoins

How Do Transaction Speeds and Costs Compare on Custodial versus Non-Custodial Platforms?

What Legal Framework Is Required to Ensure the Enforceability of a Tokenized RWA?

Glossar

Physical Asset

Tokenization ⎊ The process of creating a digital representation of a tangible asset, enabling its use as collateral or an underlying for crypto derivatives.