Asset-Backed Tokens are digital tokens that represent ownership or access rights to underlying real-world assets. These tokens are usually issued on a blockchain and are backed by physical assets such as real estate, precious metals, or commodities.
By tokenizing assets, investors can buy and sell fractions of high-value assets, which were previously illiquid and only accessible to a limited group of investors. This increases liquidity and accessibility to a wider range of investors, as ownership is verified and transferred digitally through a blockchain.
The value of Asset-Backed Tokens is tied to the performance of the underlying asset, making them more stable compared to other types of cryptocurrencies that are solely based on market speculation. This adds a level of security and predictability to the investments made through these tokens.
Overall, Asset-Backed Tokens provide a way for investors to diversify their portfolios with exposure to physical assets, while benefiting from the transparency, security, and efficiency of blockchain technology.
