Asset-Backed Tokens

Asset-Backed Tokens are physical tangible assets that become tradable on the blockchain world via certain protocols. They are the conversion of real values ​​into digital values. Real estate, gold, jewelry, cars, toys, watches, and virtually any other physical or tangible asset-based product that has real-life value can be claimed in digital. Tokens based on physical assets can be traded, stored, and owned on the blockchain network.

How Have Asset-Backed Tokens Evolved?

Bitcoin, the first of the cryptocurrencies, was of course not a symbol of anything physically. But as crypto money technology developed and its use became more widespread, the diversity increased. Today, there are tens or even hundreds of cryptocurrencies based on physical foundations that are digitally stabilized and offered for use.

In tokens linked to a physical asset, the token gains in value as the asset gains value. In this case, investors prefer to search for tokens that are valuable in physical form but have not yet achieved that value in the crypto money world and invest in them.

Asset-Backed Tokens Examples and Use Points

There are many examples when it comes to tokens derived from a real asset in physical form. Having more than $70 million of value, historical artifacts have been sold in NFT (non-fungible token) format thanks to Beeple. Thanks to the security and encryption technologies offered by Blockchain technology, this number seems to increase gradually. You can navigate to related content to browse the highest-selling NFTs.