Fractionalized Ownership

Definition ∞ Fractionalized Ownership is the practice of dividing a high-value asset into smaller, tradable units, allowing multiple individuals to collectively own portions of it. In digital asset markets, this is frequently achieved through the tokenization of real-world assets. Each digital token represents a verifiable share of the underlying physical or digital asset. This mechanism democratizes access to assets traditionally out of reach for individual investors.
Context ∞ This mechanism democratizes access to illiquid assets such as real estate, fine art, or private equity within digital markets. It also introduces new regulatory considerations regarding asset securitization, investor protection, and the legal standing of tokenized shares. The market continues to explore the liquidity and accessibility benefits offered by this innovative approach.