> For the complete documentation index, see [llms.txt](https://beefledger.gitbook.io/regeneration-series-asset-backed-digital-securitie/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://beefledger.gitbook.io/regeneration-series-asset-backed-digital-securitie/0.2-what-are-asset-backed-digital-securities/what-are-asset-backed-digital-securities.md).

# What are Asset Backed Digital Securities?

A quick introduction.

![Tangibility in a mature sector, like food production, delivers security.](https://1472935480-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MRXxoGVKlpMQ-8ZS8MG%2F-MRYQu8q2LEnEYlI_i-Q%2F-MRYRCUwv_iceSuKp-xM%2FIMG_3598.JPG?alt=media\&token=8cd8ce82-4d30-4e59-a394-572cfe5cf5cd)

## What are Asset Backed Securities

An **asset**-**backed security** (**ABS**) is an investment **security**, which is collateralised by a pool of **assets**, such as tangible assets like land and chattels (eg., livestock, equipment etc.) or intangible assets like loans, leases, credit card debt, royalties, or receivables. 

An **ABS** is similar to a **mortgage**-**backed security**, except that the underlying **securities** are not **mortgage**-based.

### What's involved?

The pool of assets is typically a group of typically illiquid assets. Pooling the assets into financial instruments - such as Units - enables investors to have access to these assets when otherwise they wouldn't be able to participate in ownership.

Each security represents a fraction of the total value  of a diverse pool of underlying assets, which supports more effective risk mitigation for investors. 

### Basis of Value

The security provides a basis of value for investors. The security also provides a means by which investor capital is 'secured' in the event that the business enterprise experiences difficulties. In this case, the underlying assets can be liquidated to recover capital for investors. 

## Adding Real Assets to DeFi

The **RE**GEN Series brings asset backed projects into the DeFi space. An excellent explanation of the overall rationale is in this [**Medium story**](https://medium.com/@metamorphpro/e4088c273db8).