Definition ∞ A Tokenized Trade involves the exchange of digital assets or real-world assets represented as tokens on a blockchain. This process facilitates faster settlement, increased transparency, and fractional ownership of various assets. It leverages smart contracts to automate the terms and conditions of the transaction. This method modernizes traditional asset transfer processes.
Context ∞ Tokenized Trade is a rapidly growing area within digital finance, extending beyond cryptocurrencies to include real estate, commodities, and intellectual property. News often highlights institutional interest and regulatory developments surrounding these markets. The ability to conduct tokenized trades on a global, permissionless basis holds significant promise for increasing liquidity and reducing transaction costs across various asset classes.