Definition ∞ Tangible security refers to physical assets or real-world guarantees that back a financial instrument or digital asset. This form of security provides a physical claim or a verifiable real-world value as a safeguard. It offers a concrete foundation for the asset’s worth. Such security reduces perceived risk by linking digital representations to physical holdings.
Context ∞ In the digital asset market, tangible security is often discussed in the context of asset-backed tokens or stablecoins that maintain their value through reserves of physical commodities or fiat currency. News reports might cover audits of these reserves or regulatory requirements for demonstrating their existence. The reliability of tangible security is crucial for investor confidence in tokenized real-world assets.
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