Definition ∞ NFT Fractionalization is the process of dividing a single Non-Fungible Token (NFT) into multiple, smaller, fungible tokens. This division allows multiple individuals to collectively own a portion of a high-value NFT, lowering the entry barrier for participation. Each fractional token represents a share of the original NFT’s ownership, making expensive assets more accessible.
Context ∞ In crypto news, NFT Fractionalization is often reported as a mechanism to democratize access to expensive digital art or collectibles, increasing liquidity and expanding the investor base for high-value NFTs. Discussions frequently address the legal and ownership implications, as well as the potential for new financial products built upon these fractionalized assets. This innovation broadens the appeal and utility of non-fungible tokens, creating new investment opportunities.