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Asset Backing
Asset backing refers to the assets, reserves or financial claims that support the value or obligations of a token. The exact relationship between the token and those assets depends on how the product is legally and financially structured.
Why it matters to you
The phrase "asset backed" by itself tells you very little. Investors still need to understand what the backing consists of, who owns or controls it, where it is held, how it is verified and what claim token holders have on it.
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