As per Shams Charania of The Athletic,
Spencer Dinwiddie signed a $34.36 million worth three-year extension contract with the Nets last December, which would come into effect this season. There are reports from various sources that Dinwiddie is planning to start a company of his own. He will be securitizing his NBA contract in the form of a digital token to raise huge sum of money upfront.
Securitizing means that the borrower gives up a share of his future income, in return for a smaller sum of payment. By this, the borrower has more money to immediately invest than he would otherwise have. In this case Dinwiddie would probably be selling shares of his contract that he will be converting into a digital token. By doing so, he would raise a lump sum payment. The token will then give returns to the investor that will be equal to their principal with interest; this amount will be covered by the money that Nets owe Dinwiddie.
A token is a term for digital currency. This bond exists in the digital currency world. The bond here is bought using token rather than through a broker.
Spencer Gray Dinwiddie is an American professional footballer, playing for the Brooklyn Nets. He averaged a career-high of 16.8 points last season. He attended a program at Harvard Business School last summer.