What is Token Basket?

A token basket refers to a pool of tokenized assets such as equities, commodities, fiat-backed stablecoins, bonds, or other assets. Many blockchain-specific token baskets are made up of large cap cryptocurrencies such as bitcoin (BTC), ether (ETH), and others. In traditional finance, a token basket is simply a collection of multiple stocks or securities that are often from the same or similar asset classes. These baskets can be used for derivatives trading independently or in combination with other types of financial instruments, and are often managed by institutional investment funds, hedge funds, mutual funds, and exchange-traded funds (ETFs).