Back to glossary

Tokenization

Tokenization is the process of converting real-world assets, such as property or commodities, into digital tokens on a blockchain. These tokens represent ownership or value in the underlying asset and can be traded or transferred like any other cryptocurrency.

Tokenization offers several benefits, including increased liquidity, fractional ownership, and more efficient trading and settlement processes. It allows assets that were previously illiquid, such as real estate or fine art, to be easily traded and divided into smaller units, opening up investment opportunities to a wider range of investors.