Asset backed Tokens Definition and Examples
Definition
These are blockchain-based units, representing a large subcategory of security tokens. They are units of value pegged to real world assets such as real estate, company shares, gold, crude oil, equity e.tc. Thus the user hold a digital form of ownership rights. The value of the token is directly affected by the worth of the underlying asset.
Benefits of Asset backed Tokens
Easy transfer of traditional assets
Digital tokens enable can be introduced to a much larger pool of investors without the need of asset custody. Thus companies can reach a bigger market due to liquid goods.
Fractional Ownership of Assets
More individual are involved in wealth creation due to fractional ownership and geographical arbitrage.
Reduces middleman and transection cost
Blockchain technology enables digitized assets to be traded on an open and transparent ledger which is easily verifiable. Blockchain verifies the transection thus lowering transection fees .
Top 30 Security tokens or asset based tokens by Market cap according to coingecko site at the time of writing:
- CETTH
- CDAI
- OHM
- CUSDC
- TIME
- RENBTC
- CUSDT
- FEI
- CVXCRV
- SETH
- PAXG
- SBTC
- XAUT
- IN
- CUNI
- CBAT
- CZRX
- SUSD
- SEUR
- SB
- OBTC
- RAI
- PBTC
- SLINK
- TBTC
- RSV
- FORT
- GYRO
- SAUD
- SHOPX
