Founded by pioneers in secure development and distributed systems, Agoric uses a secure subset of JavaScript to enable object capabilities and smart contracts. This week Mark Miller successfully implemented a particular example of higher order contracts. “Higher order” contracts allow you to effectively tokenize positions in contracts. In this particular scenario, Bob writes a covered call giving Alice the option to buy Bob’s stock shares. Alice makes a new escrow agent that allows her to trade this seat at the table to Fred, and Fred is able to verify that these are the rights he is interested in. The escrow agent code is able to treat the “seat at the table” as if it were a straightforward token, allowing us to use these “higher order” tokens in any smart contract component that accepts tokens.
Via Proof of Work Made in China page 