Collateralized tokens are the tokens that represent an ownership claim on an underlying asset locked in Kaizen Finance smart contracts. Collateralized tokens are immediately distributed to investor wallets after the purchase of locked tokens. Collateralized tokens serve as tradable proof tokens to reflect the value of locked tokens before they unlock. When locked tokens become available for the unlock, collateralized tokens are used to claim these unlocked tokens on Kaizen. Collateralized tokens can be traded, staked, or bought/sold on the kDEX.