# Synthetics

### **What are Synthetic Tokens?** <a href="#what-are-synthetic-tokens" id="what-are-synthetic-tokens"></a>

Synthetic assets are a type of financial derivatives that allow their holder to access the underlying asset without having to actually own it. A synthetic asset is simply a tokenized derivative that mimics or reflects the value of another asset.

> Assets whose value is determined by other assets or benchmarks are called derivatives. In cryptocurrency, synthetic assets are tokenized derivatives.
