Fund Tokenisation

Definition ∞ Fund tokenisation is the process of representing ownership shares or units of an investment fund as digital tokens on a blockchain. This transforms traditional fund interests into programmable digital assets, allowing for fractional ownership, enhanced liquidity, and automated transfer mechanisms via smart contracts. It reduces administrative burdens, lowers minimum investment thresholds, and expands access to a broader investor base. Tokenisation fundamentally alters the structure and accessibility of investment funds.
Context ∞ Fund tokenisation is a rapidly developing area in the digital asset landscape, frequently reported in financial news as institutions explore its potential. Key discussions involve regulatory considerations, interoperability with existing financial infrastructure, and the legal implications of digital ownership. As technology matures and regulatory frameworks adapt, fund tokenisation is poised to redefine capital markets by enabling more efficient and accessible investment vehicles.