These represent securities that are reverse engineered to obtain cash flows from a single security. They are engineered to simulate derivatives while changing important attributes like cash flow and duration. There is a Blockchain protocol called Synthetix that enables synthetic assets issuance on Ethereum Blockchain.

They are usually in the form of ERC 20 smart contracts called Synths that provide returns on assets without owning assets. Synths can be traded based on cryptocurrencies, indexes or real-world assets like precious metals.