Definition ∞ An evaluation of whether a particular asset or right is appropriate for representation as a digital token on a blockchain. It considers factors such as legal permissibility, technical feasibility, and economic benefit. This assessment determines the viability of transforming an asset into a tokenized form.
Context ∞ ‘Tokenization Suitability’ is a key consideration in the expansion of tokenized assets across various industries. Discussions often revolve around the regulatory clarity surrounding different asset classes and the technical infrastructure required for secure and efficient tokenization. Future developments are expected to clarify the legal frameworks and streamline the process for diverse asset types.
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