Tokenization Standards

Definition ∞ Tokenization standards are established protocols and guidelines that govern the creation, issuance, and management of digital tokens on a blockchain. These standards ensure consistency, compatibility, and security across different tokenized assets and platforms. Adherence to recognized standards, such as ERC-20 for fungible tokens or ERC-721 for non-fungible tokens on Ethereum, facilitates interoperability and simplifies integration into broader financial systems. They are foundational for the reliable functioning of tokenized economies.
Context ∞ The evolution and adoption of tokenization standards are critical for the development of robust digital asset markets and the integration of real-world assets onto blockchains. Current discussions frequently address the need for industry-wide consensus on new standards, particularly for complex asset classes like security tokens and stablecoins. The harmonization of these standards is seen as vital for fostering trust and enabling broader institutional participation.