Tokenization

September 29, 2025 · 1 min read · Medium

Tokenization is the process of representing real-world assets — such as real estate, stocks, art, or commodities — as digital tokens on a blockchain. Each token reflects a fraction of ownership or rights to the underlying asset, making it possible to buy, sell, and trade traditionally illiquid investments with greater flexibility. This opens access to broader audiences, lowers barriers to entry, and increases liquidity in markets that were once limited to large institutions.

Beyond financial innovation, tokenization has the potential to democratize investment opportunities. By allowing fractional ownership, small investors can participate in assets like commercial real estate or fine art that were once out of reach. Tokenization also improves transparency by recording ownership and transfers on blockchain, reducing fraud and administrative overhead. As adoption grows, tokenization is set to reshape how assets are managed and exchanged globally.