With blockchain technologies developing so fast, Algorand has firmly established itself as one of the most reliable and advanced platforms. One of its key features is the ability to create digital assets directly on the network, called Algorand Standard Assets (ASA). In this article, we will go step by step to explain what these tokens are and how they can be used in practice.
What Is Algorand Blockchain?
Algorand is a modern blockchain platform designed to solve the key problems of early crypto networks like Bitcoin and the early version of Ethereum: slow transactions, high fees, and scalability issues. It uses a unique Pure Proof-of-Stake (PPoS) consensus mechanism, which keeps the network decentralized, secure, and very fast - transactions are confirmed in just a few seconds, and fees are only fractions of a cent. Finally, an important feature of Algorand is its built-in token support: the network allows issuing Algorand Standard Assets, which we will discuss next.
What Are Algorand Standard Assets (ASA)?
Algorand Standard Assets (or ASA for short) are the token standard on the Algorand network for creating any type of digital asset. Just like other networks have their own standards (for example, ERC20 on Ethereum or TRC20 on Tron), Algorand uses its own format. But unlike networks where tokens run through separate smart contracts, Algorand has token support built directly into the protocol, making their creation and use simpler, faster, and cheaper.
ASAs are fully compatible with each other and work on the same level as the network’s main cryptocurrency, ALGO. Anyone can issue their own token by setting its name, total supply, decimals, and additional options such as freezing or assigning management roles. Thanks to their flexibility, ASAs can be used for many purposes - from mass payment solutions to unique digital assets. Below, we’ll look at which ones are most commonly used on the Algorand network.
A token is a digital asset on the blockchain that can represent different types of value: assets, rewards, access to services, or unique digital items. It can be received, stored, transferred, and used within different applications and ecosystems.
Source: allo.info
Popular Algorand Standard Assets
The ASA standard on the Algorand network is highly versatile and allows the creation of various types of tokens - from non-fungible NFTs (such as digital copyrights, in-game items, or collectible cards) to fungible assets like stablecoins, in-game currencies, reward points, system credits, and tokenized ownership rights for real-world assets, including land plots, real estate, ownership certificates, and other documents.
Algorand Stablecoins: The Largest Segment of ASA Tokens
Stablecoins take up a major part of the Algorand network. These are digital currencies pegged to the US dollar or other reserve assets, which ensures their price stability. The leading ASA stablecoin is USDC, accounting for over 95% of the total ASA stablecoin market capitalization and serving as the network’s main settlement asset. In total, more than $48 billion worth of USDC has moved through the Algorand network, with $12 billion processed in just the past year, confirming its absolute leadership in liquidity. Alongside USDC, the network also supports USDT. Although Tether has paused new USDT issuance on Algorand, the existing tokens continue to be actively used.
Source: allo.info
Other Popular ASAs
In addition to stablecoins, the ASA ecosystem actively includes meme coins (such as Monko and Tiny), NFT projects (like AlgoSeas and Rand Gallery), and financial DeFi protocols (Opulous - tokenizing music rights, Folks Finance - asset management). These tokens are actively traded and help expand the Algorand ecosystem.
Top Algorand Standart Assets. Source: coingecko.com
How to Obtain an ASA Address
To start working with ASAs, you need a standard Algorand network address - it’s universal and works for both ALGO and any ASA tokens. Obtaining such an address is easy: simply install Gem Wallet and create a new wallet. Then, select the desired ASA from the list and click “Receive” - your personal address will appear on the screen, which you can use to receive, store, and send the selected token.
Important: For working with ASA tokens, your wallet must always maintain a small ALGO balance. It is required for a reserve of 0.1 ALGO for each added ASA token, as well as for covering network fees for future transactions. This reserve mechanism is built into Algorand’s architecture.
Gem Wallet: create, manage, receive ALGO.
How to Acquire ASA Tokens
Overall, getting ASAs is quite simple. You can ask a friend to send them to your ASA address, transfer tokens from an exchange, or use the most convenient option - purchase ASA tokens directly with a credit card in Gem. Everything happens automatically in just a few clicks: go to the desired asset page, click “Buy” and follow the simple steps. It’s fast, secure, and eliminates any risk of entering the wrong receiving address.
Secure Storage for Algorand Standard Assets
ASA tokens are not something to take lightly - each one can represent real value, from dollars in stablecoins to tokenized real estate. That’s why choosing a wallet is not only a matter of convenience but also security. ASA Wallet offers everything you need for safe storage:
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Full Control Over Your Crypto: ASA Wallet is a self-custody wallet, which means your private keys are stored only by you. You fully control your crypto portfolio without any intermediaries or third parties.
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Open-Source Code: Transparency you can trust. Anyone can review how the wallet works.
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Privacy by Default: No personal data collected. No email, no documents, no selfies - just install and start using the app.
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Full Algorand Ecosystem Support: Store, receive, and send any tokens. Works with ALGO, USDC, and the latest ASA tokens.
How to Send ASA Tokens to Another Address
In general, sending ASA tokens is simple and quick. The main thing is to make sure that the recipient is ready and that you have enough ALGO to cover both the transaction fee and the required reserves. The rest is handled by the wallet: enter the address (preferably by scanning the QR code to avoid mistakes), the amount, and confirm. Within a few seconds, the tokens will appear in the recipient’s account. And if you don’t need your ALGO for active operations right now, don’t leave them idle. You can stake them and earn additional income, while still being able to withdraw and use them at any time.
What Else Can You Do With ASA Tokens?
ASA tokens on the Algorand network are not just a balance in your wallet. They are fully functional digital assets that you can easily interact with, especially when you need to make a quick swap.
Swap Algorand Standard Assets
For example, if you have USDC and want to get ALGO - it’s simple. Use a swap to instantly complete the transaction. Today, you can do this through decentralized exchanges on Algorand, such as Pact DEX. And very soon, it will become even easier: the Gem Wallet team is actively working to enable ASA swaps directly inside the wallet interface - no extra steps or third-party services needed.
