Summary
In this chapter, we explored the concept of tokenization, where rights to a real-world or digital asset are converted into digital tokens on a blockchain. Tokenization democratizes access to investments, improves liquidity, and ensures transaction transparency.
We saw various examples of tokenization, such as fractionalizing high-value artwork or property and tokenizing digital art into NFTs. We also discussed how tokenization enables small investors to participate in markets that are typically reserved for wealthier individuals or larger organizations. We also explored how businesses can tokenize their assets, whether they’re physical, digital, or financial, to create new opportunities and business models.
In the case of financial instruments such as bonds, we saw how they can be tokenized, making them more accessible and liquid, with transactions recorded transparently on a blockchain. However, we also highlighted that the tokenization process must comply with...