What is asset-backed token?
Asset-Backed token is represent its name which is nothing but the combination of virtual currency with the famous real-world assets. The best explanation is, Ethereum token is backed with the fiat, gold, silver or any other asset. Moreover, the well know in the market is, Real Estate Asset Tokenization . Which is the amalgamation of real estate assets with the crypto token and this is a highly demanding domain now in the business world. Smart Contract are automatically generated with the token and when it is pegged with any real-estate asset that ensures and enhances the asset safety and security to the next stage. That is why asset-backed tokens are often provided with the security token, which is commonly known as STO. Categories of asset-backed tokenization Here is the list of Main Asset-Backed Tokens and let's have a brief lookout about it separately. They are, Debt and equity tokenization Asset backed tokens for commodities Hard asset-token which are non-fungible Soft