What is it?
Physical Backed Tokens (PBTs) are a new type of token linked to physical items using encrypted blockchain-enabled chips. This technology allows verifiable ownership of real-world objects in the digital world, bridging Web2 and Web3 like never before.
Why it’s trending:
Introduced by projects like Azuki Huge potential for fashion, collectibles, and logistics Enables “smart” physical assets that can be owned and traded on-chain Integration with NFC and IoT devices
Risks:
High entry barrier (hardware costs)
Security of physical chips
Some assets are difficult to tokenize effectively
Conclusion:
PBTs represent the next evolution of tokenization — not just digital, but physical. As Web3 expands, expect more real-world assets to gain blockchain identities and value.