Asset tokenization is the process of transforming physical and non-financial assets into digital tokens on the blockchain. This process allows for the creation of digital equivalents of objects such as real estate, artwork, or goods using blockchain technology. Each token represents a share in the assets, simplifying their purchase, sale, and exchange.
Thanks to tokenization, assets become more accessible because it is possible to trade not whole objects but their parts. For example, buying a share in an expensive piece of art or real estate becomes possible through tokenization, which lowers barriers for investors. This approach also provides greater transparency, security, and transaction speed, as all data is recorded on an immutable blockchain.
