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Tokenized Asset Meaning

A tokenized asset is a digital representation of an underlying asset issued on a blockchain. The underlying asset may be physical, financial, or native to the digital economy, while the token reflects ownership, entitlement, or economic exposure.

Tokenized assets enable fractional ownership, faster settlement, and programmable transfer conditions. Smart contracts govern issuance, compliance rules, and lifecycle events such as dividends, redemptions, or expirations.

This reduces reliance on manual reconciliation and intermediaries. Institutions view tokenized assets as a foundation for scalable digital markets.

However, their adoption depends on custody infrastructure, regulatory clarity, and alignment between on-chain records and off-chain legal rights.

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