Tokenized asset
A tokenized asset is a token on a blockchain that stands for a real asset held by an issuer, such as gold, shares or Treasury bills. PAX Gold (PAXG) and Tether Gold (XAUT) are each backed by one troy ounce of gold.
Tokens trade around the clock like any crypto asset, but their value rests on the issuer: that the asset really exists and that the token can be redeemed for it. A token can trade at a slightly different price from the asset elsewhere.
Learn more: classes of instruments.