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Crypto Conversations: The importance of crypto synthetic assets

With synthetic asset platforms opening the doors to derivatives for thousands of new investors, only time will tell what kind of impact a potential flood of new crypto-collateralized derivative contracts will have on the traditional financial landscape 

June 08, 2022 / 09:23 AM IST
Crypto Conversations: The importance of crypto synthetic assets

Crypto synthetic assets aim to give users exposure to a variety of different assets without needing to hold the underlying asset. Representative image

A synthetic asset is a tokenized blockchain-based derivative of an underlying asset. Also referred to as synths, synthetic assets can be described as a combination of traditional derivative assets and cryptocurrencies. Crypto synthetic assets aim to give users exposure to a variety of different assets without needing to hold the underlying asset. This could be anything from fiat currencies, such as the US dollar or the Japanese yen, to commodities like precious metals, as well as index funds or other...

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