Asset tokenization is the process of transforming physical assets into digital tokens that can be stored, transferred, and sold on a blockchain. Examples of such physical assets include real estate, works of art, and commodities.
Assets’ ownership and value can be represented and exchanged digitally by tokenizing them, which increases liquidity, allows for fractional ownership, and may have positive effects on transparency and efficiency.
Tokenization makes it possible for people to invest in typically illiquid assets and to create new types of decentralized marketplaces and asset management.