What Is Tokenisation in Crypto?
Tokenisation is the process of converting real-world or digital assets into blockchain-based tokens, enabling secure and efficient trading, ownership transfer, and fractional investment. This innovation is reshaping finance by unlocking liquidity and reducing barriers to asset ownership.
How Does Tokenisation Work?
Tokenisation involves creating a digital representation of an asset—such as real estate, stocks, or even art—on a blockchain. These tokens can then be bought, sold, or traded like cryptocurrencies, providing:
- Enhanced liquidity – Assets traditionally difficult to trade become easily exchangeable.
- Fractional ownership – Investors can buy portions of high-value assets.
- Increased transparency – Blockchain ensures immutable records of ownership.
Why Is Tokenisation Important?
Tokenisation bridges traditional finance and decentralised technology, offering:
- Lower transaction costs – Eliminates intermediaries in asset transfers.
- Global accessibility – Investors worldwide can participate in markets previously out of reach.
- Improved security – Blockchain’s encryption reduces fraud risks.
The Future of Tokenised Assets
As regulatory frameworks evolve, tokenisation could expand into mainstream finance, revolutionising industries from real estate to intellectual property. Experts predict a surge in tokenised asset adoption as blockchain technology matures.
