Fund Tokenization

Definition ∞ The process of representing ownership interests in a fund, such as a venture capital or real estate fund, as digital tokens on a blockchain. This mechanism transforms traditional illiquid fund shares into more easily transferable digital assets. It aims to enhance liquidity, broaden investor access, and streamline administrative processes through decentralized ledger technology.
Context ∞ ‘Fund Tokenization’ is a topic of increasing interest in discussions about the future of alternative investments and decentralized finance. News often covers the launch of new tokenized funds, regulatory considerations, and the potential for increased secondary market liquidity. Experts analyze its capacity to democratize access to private markets and reshape traditional fund management structures.