Concept

An NFT ABT (NFT assets backed token) is a backed crypto asset (specifically, an asset-backed token) in which the underlying asset is non-fungible tokens (NFTs). These tokens can, per se, provide a category of asset backing, representing ownership of certain digital assets like digital art, collectibles, or virtual real estate. Backed crypto assets are divided into tokenized traditional assets (tokenized assets) and assets backed using a stabilization mechanism (stablecoins). Stabilized assets are grouped as those referring to a single fiat currency and those referring to other assets that provide a stable performance over time. The non-fungible token can be, in turn, backed by certain types of assets such as real world assets (RWAs). A real-world asset NFT (RWA NFT) is a non-fungible token (NFT) that represents ownership of, or rights to, a real-world asset. Real world assets (RWAs) are tangible assets and financial assets that exist outside the digital space. These can range from debt securities (e.g., bonds) to real estate properties, commodities, equipment and machinery. In the blockchain space, digital tokens represent these physical and traditional financial assets. The tokenization of RWAs is seen as one of the largest market opportunities in the blockchain industry, with a potential market size in the hundreds of trillions of dollars.

Classification

NFT ABTs represent fractional ownership of the underlying NFTs. These tokens can be classified in two categories: hard NFTs, which represent ownership of physical assets connected to the blockchain, or soft NFTs, which represent ownership of digital assets created and maintained on the blockchain. In either case, the tokens perform in accordance with how the underlying asset perform.

Synonyms/ acronyms

It is also known as NFT AB token.