Definition ∞ Tokenization growth refers to the increasing trend of representing real-world assets or rights as digital tokens on a blockchain. This process converts tangible or intangible assets into programmable digital units, enabling fractional ownership and easier transfer. Examples include tokenized real estate, equities, or intellectual property. This expansion indicates a broader application of blockchain technology beyond native cryptocurrencies.
Context ∞ Tokenization growth is a key area of innovation within the digital asset sector, with significant potential to revolutionize traditional financial markets. Discussions often address the legal and regulatory frameworks required to support the issuance and trading of these tokenized assets. Future developments include the expansion of tokenization into new asset classes and the creation of more efficient secondary markets for these digital representations.
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