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NFT Financialization

Definition

NFT financialization is the process of integrating non-fungible tokens into broader financial markets and applications. This involves creating financial instruments and services around NFTs, such as fractional ownership, lending against NFTs as collateral, or using them in decentralized finance (DeFi) protocols. It aims to unlock liquidity and expand the utility of NFTs beyond digital collectibles by enabling new investment strategies and market participation. This development allows for the valuation and trading of unique digital assets within a financial context.