What Is a “Tokenized Asset” and How Does It Relate to Derivatives?
A tokenized asset is a digital representation of a real-world or digital asset on a blockchain. This process converts the asset's value and ownership rights into a programmable token.
Tokenized assets can themselves be derivatives, such as a tokenized future contract, or they can be the underlying asset for a derivative, such as a tokenized bond that is the basis for an options contract. The token is essentially a wrapper for the asset's value.
Glossar
Tokenized Asset
Concept ⎊ A Tokenized Asset is a digital representation of ownership or a fractional claim on an underlying asset, which can be tangible, such as real estate or gold, or intangible, like intellectual property or company equity, recorded on a blockchain.
Decentralized Finance
Architecture ⎊ Decentralized Finance, within the cryptocurrency ecosystem, represents a paradigm shift in financial infrastructure, moving away from centralized intermediaries towards peer-to-peer systems leveraging blockchain technology.
Tokenized Assets
Nature ⎊ Tokenized Assets are digital representations of ownership rights or economic interests in real-world assets, such as real estate, commodities, or traditional securities, recorded on a blockchain.
Digital Representation
Abstraction ⎊ Digital representation within cryptocurrency, options trading, and financial derivatives signifies the conversion of real-world assets or rights into tokenized or numerically defined equivalents, facilitating efficient transfer and programmatic execution.