Asset tokenization involves converting physical or digital assets into digital tokens on a blockchain. This process allows for ownership and rights associated with that asset to be represented in a secure, transparent manner.By creating tokens that represent real-world assets—such as real estate, artwork, or commodities—owners can trade or transfer these tokens easily. This often leads to increased liquidity and broader access to investment opportunities, as fractional ownership can be enabled.Tokenization also enhances transparency and reduces the costs associated with traditional asset management. Smart contracts can automate transactions, ensuring that all parties comply with agreed terms without the need for intermediaries.Overall, asset tokenization opens up new avenues for investment and asset management, democratizing access to a variety of asset classes while providing the benefits of blockchain technology, such as security and efficiency.