What are synthetic assets and why it is interesting?

Synthetic assets based on technologies such as the blockchain and smart contracts can solve the problems mentioned earlier. Synthetic assets are financial assets that simulate one or more underlying assets. For example, the all familiar USDT is a synthetic asset mirroring the US dollar.

To put it simply — the synthetic asset technology allows for tokenizing any asset. You can issue tokens backed by cryptocurrency, fiat, stocks or bonds, commodities or precious metals… Anything you can imagine! These tokens allow anyone to access markets previously unavailable due to a high entry threshold.

This solves one of the key issues today, as a lot of people don’t have access to investment vehicles. Even when an optimal investment is identified, investors still have a high entry barrier — requirements for holding a large number of assets and previous investment experiences, to name a few. Fortunately, we can solve all of those issues by connecting real-world assets to the blockchain with synthetic assets technologies.