What it means
Turning an asset, such as money or a bond, into tokens on a blockchain so it can move like any other token.
A stablecoin is tokenised money. Tokenised funds and bonds work the same way.
How it works
It makes assets easy to send and use in DeFi, with the issuer's risk attached.
Related terms
| Term | What it means |
|---|---|
| Real-world assets (RWA) | Ordinary assets, such as government bonds or loans, represented as tokens on a blockchain. |
| Token | A unit of value recorded on a blockchain, which can stand for money, a vote, a share of a pool or anything else. |
| Stablecoin | A token on a blockchain designed to keep a steady value, usually one dollar or one euro, backed by reserves. |
This glossary explains terms in general. It isn't investment, tax or legal advice.