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Tokenized Collateral
Tokenized collateral is an asset or financial interest represented using blockchain based tokens and used to secure a loan or another financial obligation. Examples could include tokenized securities, fund interests or other eligible tokenized assets.
Why it matters to you
Tokenization can make collateral easier for compatible financial systems to identify, transfer and potentially manage programmatically. But the value of tokenized collateral still depends on the underlying asset, the legal rights attached to the token and whether the collateral can actually be realized when needed.
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