Fund Share Token

Definition ∞ A Fund Share Token is a digital asset that represents a fractional ownership interest in an investment fund. This tokenization allows for increased liquidity, transparency, and accessibility to traditional or digital asset portfolios. Holders of these tokens possess a verifiable claim to a portion of the fund’s underlying assets and associated returns. Such tokens enable new models for asset management and collective investment.
Context ∞ The concept of Fund Share Tokens is gaining prominence in discussions about the future of finance, particularly in democratizing access to previously exclusive investment opportunities. Regulatory frameworks are evolving to accommodate these digital representations of ownership, addressing concerns related to investor protection and market integrity. The continued adoption of this technology could significantly reshape how investment funds are structured and distributed globally.