Tokenized Real-World Assets

Definition ∞ Tokenized real-world assets are representations of tangible or intangible physical assets, such as real estate, art, or commodities, converted into digital tokens on a blockchain. Each token signifies ownership or a fractional share of the underlying asset. This process enables fractional ownership, increased liquidity, and automated transfer through smart contracts.
Context ∞ The tokenization of real-world assets is a rapidly growing area within digital finance, presenting opportunities for increased market accessibility and efficiency. Regulatory frameworks are evolving to address the legal status, ownership rights, and transferability of these digital representations. This sector holds promise for democratizing access to various asset classes.