Asset Financialization

Definition ∞ Asset financialization describes the process of transforming tangible or intangible assets into financial instruments that can be traded or used in financial transactions. This involves converting non-liquid assets into liquid forms, often through securitization or tokenization on blockchain networks. It permits a broader range of participants to gain exposure to asset classes previously inaccessible. The objective is to broaden investment opportunities and facilitate capital movement.
Context ∞ Within digital assets, asset financialization is a central theme, with real-world assets increasingly represented as tokens on blockchain platforms. Debates persist regarding the regulatory classification of these tokenized assets and the legal frameworks required to support their transfer and ownership. Monitoring the evolution of stablecoins and security tokens offers key insights into this developing trend.