Physical Asset Tokenization

Definition ∞ Physical Asset Tokenization is the representation of real-world, tangible assets as digital tokens on a blockchain. This process involves creating a digital certificate of ownership or a fractional share linked to a physical item. It enhances liquidity, transparency, and divisibility for assets like real estate, art, or commodities.
Context ∞ A key discussion centers on establishing clear legal frameworks and robust verification processes to securely link physical assets to their digital tokens. Future developments will likely include the widespread adoption of standardized protocols for physical asset tokenization, facilitating greater institutional participation and broader market access.