What is an Asset-Backed Token? — Security Tokens For Beginners
Asset-backed tokens are a growing class of digital assets that open the door for compliant and regulated digital ledger investment. These “Security Tokens” are called to be the future of financial transactions for the digital capital markets, and we want to explain you why.
Security Tokens are a new tool for digital transformation, tackling the inefficiencies of the traditional systems while ensuring the security of investments. However, many see them as a threat. So we are here to explain why they are rather an empowering instrument.
The digital assets’ ecosystem has been steadily growing since the introduction of the blockchain, an immutable and decentralized system that allows assigning digital value to any physical object, an intellectual work, a financial asset or any type of transaction.
This possibility, called “asset tokenization”, is currently becoming the focus of many industries interested in adapting and surviving the next economic revolution. Given that the token economy offers not only plenty of efficiency gains but the opening to a global base of investors, having a proactive attitude towards…