What is tokenization?
Tokenization is the process of converting ownership of real-world assets like real estate, art or private equity into digital tokens on a blockchain. These tokens can then be bought, sold or traded in smaller units, making previously illiquid assets more accessible.
Tokenization can enable investors to buy fractional shares for as little as $1,000, rather than requiring $100,000 to invest in a real estate property.
Tokenization can enhance liquidity, transparency and efficiency in alternative investing. It also opens up opportunities for a broader range of investors to participate in various markets.
However, regulatory clarity and investor protections are still evolving, so tokenized assets may carry unique risks and investors should conduct thorough due diligence and consult an investment professional before making an investment decision.