Tokenization Schemes

Definition ∞ Tokenization schemes are structured methods for representing real-world assets or rights as digital tokens on a blockchain. These schemes define the rules, standards, and technical specifications for creating, issuing, and managing these digital representations. They facilitate fractional ownership, increased liquidity, and automated transfer of assets like real estate, art, or commodities. Effective tokenization schemes are essential for bridging traditional assets with the digital economy.
Context ∞ News concerning tokenization schemes frequently covers regulatory developments, the launch of new asset-backed tokens, and discussions about the legal enforceability of digital ownership. Debates often address the challenges of valuation, custody, and compliance when converting traditional assets into digital form. The continued refinement of tokenization schemes is a significant trend for expanding the scope of digital assets.