What it means
Ordinary assets, such as government bonds or loans, represented as tokens on a blockchain.
Tokenised treasury funds let people hold short term government debt onchain.
How it works
They depend on the company behind the token as much as on the code.
Related terms
| Term | What it means |
|---|---|
| Tokenisation | Turning an asset, such as money or a bond, into tokens on a blockchain so it can move like any other token. |
| Stablecoin | A token on a blockchain designed to keep a steady value, usually one dollar or one euro, backed by reserves. |
| Reserves | The cash and short term assets a stablecoin issuer holds to back every token in circulation. |
This glossary explains terms in general. It isn't investment, tax or legal advice.