Asset-Backed Tokens

Digital claims on a physical asset that is supported by that asset are known as asset-backed tokens. Almost any other actual, physical asset may be tokenized and turned into an asset-backed token, including gold, crude oil, real estate, stock, soybeans, and others.

A development made feasible by blockchain technology is asset-backed tokens. Of course, the first token was Bitcoin, but this cryptocurrency is not backed by any real-world assets. Since the invention of Bitcoin, much has changed, and there are now thousands of various cryptocurrencies, from brand-new digital ones to stablecoins backed by fiat money.