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 tokenizationHere is the list of Main Asset-Backed Tokens and let's have a brief lookout about it separately.
They are,Debt and equity tokenizationAsset backed tokens for commoditiesHard asset-token which are non-fungibleSoft asset-token which are non-fungible Advantages of asset-backed tokenSince the assets are backed with the crypto token which are build from the decentralized blockchain platform, it became obvious that the benefits will be high.
And, here is the list of advantages of asset-backed tokenization,Greater accessibility and liquidity of assetsTransparencyImmutabilityFractional ownershipCost savingsAnd Normally it will take hours or days for an asset or fund transaction but this blockchain technology makes the things quite easier.Create Your Own Asset-Backed TokenSo, create your own token and safe-guard your asset as well as earn profit by it.