tokenization

Syllable breakdown

Dictionary meaning

the process of converting rights to a real-world or digital asset into a digital token on a blockchain, enabling fractional ownership, programmable transfer, and global trading of assets that were previously illiquid or difficult to divide; tokenization is being applied to real estate, private equity, fine art, government bonds, carbon credits, and intellectual property; proponents argue that tokenization could dramatically democratise access to investment in assets previously limited to institutional or high-net-worth investors, while regulators focus on whether tokenized securities fall within existing frameworks for investor protection