Overview
Tokenization is representing real-world or digital assets as tokens on a blockchain. It makes assets programmable, divisible, and tradable. It is the basis of RWA and security tokens.
How It Works
An asset is legally wrapped into a token that represents ownership or a claim. The token can be traded, used as collateral, or divided. Its value is backed by the underlying asset.
Why It Matters
Tokenization unlocks liquidity and programmability for traditional assets like real estate, bonds, and art. It is one of the largest growth areas in crypto. It bridges traditional and on-chain finance.
Related Concepts
Tokenization relates to RWA, Security Tokens, and Stablecoins. It brings Traditional Assets on-chain.