Financial NFTs: Re-imagining the Traditional Finance Market | HackerNoon

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'Financial NFTs: Re-imagining the Traditional Finance Market ' by dan_jgs blockchain tatum_io

One of the newest trends occurring within the NFT space is the rise of Financial NFTs. These tokens take traditional banking tools, evolve them, and can also benefit the DeFi and trade finance space. Due to the potential of Financial NFTs, they could easily reshape and vastly improve the financial landscape.

in the third quarter of 2021 alone. The majority of NFTs are geared more towards digital collectibles and art, but more and more use cases are being found as the industry progresses. Financial NFTs are tokenized financial products that make it possible to tokenize loans as NFTs, providing holders with a set interest rate for the loan's duration. Another benefit is that as an NFT, these tokenized loans can be sold on marketplaces, allowing holders to alter or change loans and interests easily while also moving from set to floating interest rates.

With that said, Financial NFTs can act as an insurance token in DeFi’s cover protocols to protect users and become a solution to DeFi’s long-standing issues.

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