What Is a Semi-Fungible Token (SFT), and What Is Its Application in Financial Tokenization?
Semi-fungible tokens (SFTs) are fungible within a specific group but non-fungible across different groups. For example, all tokens representing a specific tranche of a bond with the same maturity are fungible, but they are non-fungible compared to a different tranche.
SFTs, often using ERC-1155, are ideal for representing financial assets with distinct, time-sensitive attributes, like tickets, specific debt tranches, or vesting schedules.