Assets that hold the same value as another asset are known as synthetic assets. Traditionally, synthetic assets combine numerous derivatives(swaps, options, futures) that imitate an underlying asset(bonds, indexes, stocks, commodities).
In the crypto industry, synthetic assets are known as crypto synths: Tokenized derivatives of an underlying asset. Crypto synths could be described as a combination of cryptocurrencies and traditional derivative assets.
The value of a derivative is linked to another asset such as a stock or bond in traditional finance. Traders can speculate on the movement of an asset without holding its ownership in the Finance industry. In the crypto space, a real-world asset is tokenized on a Blockchain, and a digital certificate is provided as proof of ownership.
Thus, the concept of digital fractional ownership has unlocked a door of opportunities for DeFi development experts by helping them create a digital version of real word assets and commodities.
This blog sheds light on the perks of utilizing crypto synthetic assets in the DeFi industry and the top crypto synth protocols available in the market.
Here are some benefits of utilizing crypto synthetic assets in the DeFi space:
Many exchange platforms have emerged over the past few years considering the popularity of crypto synthetic assets to meet investors’ demand. Here are some popular crypto exchange platforms that help DeFi development experts buy and sell crypto synthetic assets with utmost ease and convenience:
To conclude, the concept of crypto synths will slowly but surely gain momentum in the coming days due to two primary reasons: security and traceability. Trades are recorded on a Blockchain-based ledger that ensures traders’ security and anonymity. DeFi development experts must capitalize on this opportunity provided by crypto synths to make a mark in the current financial paradigm. Those finding it challenging to understand the concept must also get in touch with trusted DeFi development services providers like Antier for more clarity.
Antier is a top-tier DeFi development company that helps businesses in the DeFi space develop crypto synths as per their business requirements. The company also provides crypto synthetic exchange platform development services to provide users with a seamless trading experience.
Since its inception, Antier has served numerous clients from diverse industry verticals such as healthcare, finance, logistics, banking, and more with advanced DeFi development services. Get in touch with our DeFi development experts to share your crypto synthetic asset development requirements today.