Fractional Asset Ownership

Definition ∞ Fractional Asset Ownership permits multiple individuals to collectively own a portion of a high-value asset, such as real estate, fine art, or rare collectibles. This mechanism divides an asset into smaller, more affordable units, making investment accessible to a wider range of participants. It lowers entry barriers and enhances liquidity for traditionally illiquid assets.
Context ∞ In the digital asset realm, Fractional Asset Ownership is frequently achieved through tokenization, where an asset is represented by multiple digital tokens on a blockchain. News reports often highlight platforms enabling fractional ownership of real-world assets via security tokens, democratizing access to exclusive investments. Regulatory frameworks are developing to govern these tokenized fractional interests, ensuring investor protection and market integrity.