What is Asset Tokenization?

Essentially, Asset Tokenization refers to the digitization of tangible and intangible assets before converting them into tokens. A blockchain will be used to store these tokens. Asset tokenization will result in multiple tokens issued for the same asset, not just one token representing the entire asset.

Since different token holders will own the same asset, asset tokens will have the concept of fractional ownership. Tokenizing assets allow their owners to store, trade, or transfer them to co-owners.

Blockchain technology and STO (security token offering) are closely related to asset tokenization. Essentially, when it comes to asset tokenization, it all starts with blockchain technology, and the asset owner will need to select a unique STO platform to convert their physical assets.

There has been an increase in the number of asset owners, individuals, and startups looking for ways to tokenize assets over the past few years. In the future, asset tokenization will become the foundation of blockchain technology, it would not be an exaggeration.

With the knowledge we now possess about real estate tokenization, let us take a look at some of the advantages it brings to the blockchain industry.

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