Tokenized Treasury

Definition ∞ A tokenized treasury refers to a collection of assets, often held by a decentralized autonomous organization or a company, that are represented as digital tokens on a blockchain. These tokens can represent various asset types, including cryptocurrencies, stablecoins, or even tokenized real-world assets. The management and allocation of these assets are typically governed by smart contracts and community voting mechanisms. It provides a transparent and auditable record of organizational holdings.
Context ∞ In the decentralized finance (DeFi) space, tokenized treasuries are a key component of many protocols, funding development, liquidity, and ecosystem grants. News often reports on governance proposals affecting the composition or deployment of these treasuries, which can influence protocol direction and token value. The secure and efficient management of a tokenized treasury is a critical aspect of a project’s long-term sustainability. This structure allows for unprecedented transparency in organizational finance.