BRM Investment Options

To an investor, A redeemable token in cryptocurrency is a type of digital token that can be exchanged for a specific asset, service, like real-world goods or services at a later time. These tokens are usually backed by a physical or digital asset, ensuring that they have intrinsic value. They represent value or rights that can be claimed against the issuer or the system they are part of. 

Redeemable:

These smart tokens or “stable coins” are designed to have a specific purpose beyond just being a medium of exchange or a store of value. They offer the holder the right to redeem them for something tangible or valuable. As an example, a loyalty program token where users accumulate points for purchases. These tokens can then be redeemed for discounts or free goods at the merchant’s store.

Tokenisation:

The process of converting an asset or right into a digital token on the blockchain is known as tokenization. This allows for fractional ownership, increased liquidity, and traceability. 

Key Features:

If a company declares dividends, ordinary shareholders are entitled to receive them, providing a potential income stream.

Redeemable tokens often:

Have a specific purpose: They are not just a digital currency but are designed to provide access to something.

Are tradable: They can be bought, sold, and transferred between users.

While both coins and tokens exist on the blockchain, coins are typically used as a primary medium of exchange or a unit of account, while tokens can have a wider range of utility and can be redeemable for various things.

Security tokens: 

Represent ownership in real-world assets, like real estate or securities.