Tokenized Fund Structure

Definition ∞ Tokenized Fund Structure is a financial arrangement where the ownership shares or interests in an investment fund are represented by digital tokens on a blockchain. These tokens grant holders fractional ownership and associated rights, such as voting or dividend distribution, governed by smart contracts. This structure enhances liquidity, reduces administrative overhead, and allows for broader investor access to traditionally illiquid assets. It modernizes fund administration through distributed ledger technology.
Context ∞ Tokenized fund structures are a significant topic in news reports on the convergence of traditional finance and digital assets, particularly in the realm of asset management. Articles often cover new investment products that leverage blockchain to offer fractional ownership of real estate, private equity, or venture capital funds. The potential for increased transparency, efficiency, and global accessibility drives much of the discussion around this innovative financial model.