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.