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Tokenization Meaning

Tokenization is the process of representing real-world or digital assets as blockchain-based tokens. These tokens encode ownership rights, transferability, and programmable logic, enabling assets to be traded, settled, and managed on-chain.

Tokenization can apply to financial instruments, commodities, real estate, intellectual property, or native digital assets. By converting assets into tokens, markets gain benefits such as fractional ownership, faster settlement, reduced intermediaries, and global accessibility.

For institutional finance, tokenization represents a structural shift in how assets are issued and managed.

It bridges traditional finance and blockchain infrastructure, enabling new liquidity models while introducing regulatory, custody, and operational considerations.

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