Definition ∞ Tokenized Loans are credit agreements represented as digital tokens on a blockchain, allowing for fractional ownership, secondary market trading, and automated management via smart contracts. These loans can involve various forms of collateral, including other digital assets or even real-world assets converted into tokens. This innovation streamlines lending processes and expands access to credit.
Context ∞ The concept of tokenized loans is a growing area within decentralized finance, offering new structures for credit markets and asset-backed lending. News often covers new platforms facilitating these loans, regulatory considerations for their issuance, and their potential to disrupt traditional financial services.