Definition ∞ A tokenized asset is a digital representation of an existing tangible or intangible asset, recorded and managed on a blockchain or other distributed ledger technology. These digital tokens represent ownership rights, claims, or value tied to the underlying asset. This process enables fractional ownership, increased liquidity, and more efficient transferability of assets.
Context ∞ Tokenization extends the benefits of blockchain, such as immutability and transparency, to traditional asset classes like real estate, equities, or commodities. It allows for broader access to high-value markets by lowering investment thresholds. The value of a tokenized asset is derived from its underlying real-world asset, distinguishing it from native cryptocurrencies whose value stems from network utility and market demand.
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