Tokenized silver is a digital asset built on blockchain technology, where each token represents a specific amount of physical silver, such as one ounce or one gram. Unlike “paper silver” or unallocated accounts, these tokens are typically backed 1:1 by allocated silver bullion that is securely stored in insured professional vaults.
The primary purpose of tokenized silver is to provide a digital record of ownership. Instead of relying on paper certificates kept in filing cabinets, ownership is recorded on a decentralized ledger. This ensures that the asset’s history is immutable (cannot be altered) and easily verifiable.
Learn more about an example of tokenized silver in the following article.