Asset Tokenisation

Definition ∞ Asset tokenisation converts real-world or digital assets into digital tokens on a blockchain. This process represents ownership or rights to an underlying asset in a divisible and transferable digital format. It enables fractional ownership and increases liquidity for previously illiquid assets. The tokens function as programmable representations, facilitating new forms of value exchange.
Context ∞ Asset tokenisation is a significant topic within digital finance, focusing on its potential to democratize access to investments and streamline asset transfers. Key discussions involve regulatory clarity across various jurisdictions and the technical standards for interoperability. A critical future development involves expanding the range of assets that can be effectively tokenized, from real estate to intellectual property.