Tokenization Goes Beyond Moving Assets Onchain
Edited by Steinar Vigdel Kolnes, Editor, Oslo
Tokenized assets can offer instant settlement, automated coupon payments and collateral reuse in DeFi, extending their role beyond digital ownership records.
Asset tokenization involves more than representing traditional holdings on a blockchain. The Defiant highlights settlement, payment automation and collateral reuse as features that distinguish tokens from their offchain counterparts.
Instant settlement can change how asset transfers are completed, while automated coupon payments can streamline distributions to holders. These functions extend tokenization beyond simply recording ownership.
Tokenized assets can also serve as collateral that is pledged again within decentralized finance, or DeFi. That ability connects the assets to onchain financial activity rather than leaving them as standalone digital representations.
Source: The Defiant
