Collateralized Debt Obligation (CDO)
By CoinGecko | Updated on Aug 13, 2021
A collateralized debt obligation (CDO) is a form of derivative in which the value is generated from another underlying asset, and is sold to institutional investors. CDOs are often made up of several loans that have been bundled together and sold in the market by the lender.
Related Terms
Trustless
Entirely verifiable, without needing to trust or assume an action is done completely and in good faith.
Algorithmic Stablecoin
Algorithmic stablecoins are tokens pegged to a fiat currency which is usually the US dollar, purely through software and specific conditions.
Tangle
The name for IOTA's Directed acylic graph (DAG) based transaction settlement layer.
Soft Fork
A backward-compatible update to a decentralized blockchain protocol.
Hungry for more knowledge?
Back to Glossary or Subscribe to our newsletter.