Tokenisation

Definition ∞ Tokenisation is the process of converting a real-world or digital asset into a blockchain-based token. This token represents ownership or rights to the underlying asset, enabling its fractionalization, programmable features, and seamless transfer on a distributed ledger. Assets such as real estate, art, commodities, or even intellectual property can undergo this conversion. It enhances liquidity and accessibility for various asset classes.
Context ∞ Tokenisation is a rapidly expanding area within digital finance, attracting attention for its potential to democratize access to illiquid assets and create new market efficiencies. Debates often concern the legal classification of tokenized assets and the regulatory implications across different jurisdictions. Future developments will likely see a broader range of assets being tokenized, alongside the maturation of legal and technical standards for their issuance and trading.