A look into tokenised securities

Several platforms offer tokenised securities, the most popular being centralised exchange FTX and the DeFi protocol  Mirror. Tokenised securities allow traders to enhance their portfolios by gaining exposure to equities markets alongside cryptocurrencies. DeFi protocols such as Mirror also open up many opportunities such as staking, liquidity providing, and governance.

A tokenised security seeks to track the price movements of an underlying/corresponding asset. These tokens' tracking mechanisms vary depending on the organisation that mints them. This article considers two pricing mechanisms: those that are directly collateralised and those that are synthetically pegged.