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What is tokenization

Tokenization is the process of representing an asset as a token on a blockchain.

This process makes it possible to create digital representations of both real-world and digital assets. In many cases, specialized tokenization platforms are used to provide the technical infrastructure and legal framework required to issue tokens.

Key facts about tokenization​

  • used to digitize assets
  • works on blockchain infrastructure
  • widely used in financial and digital markets

Tokenization explained simply​

Tokenization is the process of turning an asset into a digital token.

How tokenization works​

Tokenization typically involves several steps:

  1. identifying the underlying asset
  2. creating a token that represents the asset
  3. recording the token data on a blockchain

Examples of tokenization​

Assets that can be tokenized include:

  • real estate
  • stocks
  • bonds
  • commodities

Where tokenization is used​

Tokenization is used in:

  • decentralized finance (DeFi)
  • financial platforms
  • investment projects

How tokenization relates to blockchain​

Tokenization relies on:

Learn more​

For a detailed explanation of token types and their classification, see:

FAQ​

What assets can be tokenized?​

Almost any asset can be tokenized, including real estate, financial instruments, and commodities.

How is tokenization different from digitalization?​

Tokenization creates blockchain-based representations of assets.

Why is tokenization important?​

It makes assets easier to trade, transfer, and divide into smaller units.

Where is tokenization used today?​

It is widely used in finance, investments, and DeFi platforms.