System and method for issuing, circulating and trading financial instruments with smart features

A computer-implemented method for issuing, circulating and trading financial instruments having smart features, the method comprising:

• issuing, by a computer processor, a financial instrument comprising monetary value and physically attached to a token device, and wherein the token device comprises:
• a unique address including (a) a device identifier that indicates ownership, value, and transferability of the financial instrument and (b) a network address for tracking said token device that changes based on a current network location of the token device, at least a portion of said device identifier changes based on at least a portion of financial parameters of the financial instrument,
• a non-transitory computer memory to record the financial parameters, and
• one or more communication capabilities;
• changing, by the computer processor, the network address based on the current network location of the token device;
• changing, by the computer processor, at least a portion of the device identifier based on at least a portion of financial parameters of the financial instrument;
• transferring, by the computer processor, the financial instrument based on the transferability of the financial instrument;
• and
• tracking, by the computer processor, the ownership, value, and transferability of the financial instrument based on the device identifier and the network address of the associated token device by communicating with the token device at least once subsequent the issuing of the financial instrument.