verb

redeem

rih-DEEM/rɪˈdiːm/

To obtain value or regain ownership by settling a claim.

The customer redeems the bread coupon for a loaf.

At a modern counter a customer hands over a simple coupon bearing only one bread pictogram and receives a loaf, a clear exchange of voucher for benefit.

Etymology

The original image is “buying back”: recovering something through payment. The selected commercial sense applies that exchange idea to obtaining money, goods, or a promised benefit in return for something presented.

In context

Curiously Crypto1:59

the utility token holder can use it to redeem a particular service of the company that issued it

What is a Utility Token? Do they ACTUALLY HAVE VALUE? #crypto

More examples

You can redeem this coupon for five dollars off your purchase.
She redeemed her gift certificate at the bookstore.
He redeemed his pawned watch by paying back the loan plus interest.

Forms

redeem · redeems · redeemed · redeeming

redemption noun — Exchange for value or recovery through payment.

redeemable adjective — Eligible for exchange or recovery through payment.

Similar words

exchange: Means trading one thing for another, not necessarily claiming promised value.
reclaim: Means taking something back, without necessarily paying what is owed.
cash: Specifically means exchanging a check or similar instrument for money.