Let’s assume you own 100 million won worth of Tesla stock. However, at the same time, I have 20 million won in credit card debt, and the interest is accumulating by hundreds of thousands of won every month. It’s a waste to sell stocks to pay off debt, but if you keep paying interest, it feels like money is leaking out. Blockchain technology is beginning to solve this dilemma. This is a strategy to pay off expensive debt first by borrowing money at an annual interest rate of 4-5% using stocks as collateral, without selling stocks.
What is a token security? What happens when you put stocks on the blockchain
Tokenized equity is the conversion of real stocks such as Tesla and Nvidia into blockchain token form. Ownership of stocks remains the same and can be freely used in the DeFi (decentralized finance) ecosystem. Simply put, it gives ‘digital wings’ to real stocks.
This article was written based on market data and chart analysis and is not a recommendation to invest in specific stocks.