Re:Fake Tesla, Apple stocks have started trading on blockchains
by nly on Wednesday July 07, 2021 @04:40AM
(#27758807)
Not always. There are synthetic ETFs backed by nothing but swap contracts.
For example, commodities ETFs typically work by throwing cash in to treasuries and purchasing the total return swap contracts between those treasuries and some benchmark of commodity future contracts.
The major difference with these blockchain tokens is that the collateral (the stablecoin) held against the stock benchmark is itself completely synthetic.
For example, commodities ETFs typically work by throwing cash in to treasuries and purchasing the total return swap contracts between those treasuries and some benchmark of commodity future contracts.
The major difference with these blockchain tokens is that the collateral (the stablecoin) held against the stock benchmark is itself completely synthetic.