Debt Tokens and Its Functionalities - An Overview What are Debt Tokens? Debt tokens are the tokens that represent a debt or cash that is similar to short term loans on an interest rate for a certain principal amount lent to the company. It is equivalent to the raised capital through debt.
Debt security tokens symbolize some of the debt instruments such as real estate mortgages and corporate bonds. The behaviour of these tokens are imposed by two main factors. One is Risk and another one is Dividend. Before knowing the importance of debt tokens, here are the factors that describe its functionality. Risk It means a risk that is subject to the debtors in default or a sudden change while considering the debt valuation. Dividend Debt tokens are structured to develop a common dividend that is based on the payment amount of the latent debt instrument. To Know More >> https://www.securitytokenizer.io/