Tokenization Definition - Glossary

Tokenization is converting real-world assets into digital tokens on a blockchain. This enhances liquidity, accessibility, and transparency.

Tokenization is the process of converting physical or intangible assets into digital tokens on a blockchain. This allows assets like real estate, art, or stocks to be represented digitally, making them more accessible and easier to trade. Each token represents a share of the underlying asset, enabling fractional ownership and increased liquidity. By using blockchain technology, tokenization enhances transparency and security, as every transaction is recorded immutably. This democratizes investment opportunities, allowing a broader range of investors to participate in markets that were traditionally difficult to access. Tokenization ultimately bridges the gap between traditional finance and the digital economy.