Definition ∞ Copper Tokenization converts physical copper assets into digital tokens on a blockchain. Each token represents a specific quantity or share of the underlying copper, providing digital ownership. This process facilitates fractional ownership, simplifies transfers, and enhances liquidity for a historically illiquid commodity. It leverages blockchain’s transparency and immutability for asset management.
Context ∞ The tokenization of commodities like copper represents a growing trend within digital finance, aiming to bridge traditional markets with blockchain technology. Key discussions center on establishing reliable custody solutions for the physical asset and achieving regulatory clarity for these digital representations. Observing the market acceptance and legal precedents set by copper tokenization will provide a valuable indicator for other real-world asset tokenization efforts.