All termsFundamentalsStart here
Asset Class
An asset class is a broad group of investments that share similar characteristics. Examples include equities, bonds, real estate, commodities and cash or cash equivalent instruments. Tokenization does not create a completely new asset class simply because an asset is placed on a blockchain. A tokenized bond, for example, is still economically connected to the bond market.
Why it matters to you
Knowing the asset class helps you understand where an investment's returns and risks are likely to come from. Blockchain technology may change how an asset is issued, transferred or accessed, but it does not remove the underlying economics of the asset itself.
Terms that sit next to this one
Learn real world assets properly
Our RWA course. Chapter 1 is free.