Fractionalized Asset

Crypto terminology for Frame refers to the specific language and jargon used within the cryptocurrency framework, aiding understanding and communication.

Fractionalized assets refer to dividing ownership of a high-value asset into smaller, tradable units. This allows multiple individuals to own a piece of the asset instead of the whole, making it more accessible.In practice, this concept often applies to real estate, fine art, or other expensive physical assets. Each fraction can be represented through tokens on a blockchain, ensuring transparency and security in transactions. For example, if a piece of art is valued at $1 million, it can be split into 1,000 tokens, each worth $1,000. Investors can buy, sell, or trade these tokens, enabling more people to invest in valuable assets that were previously out of reach. This approach democratizes investment opportunities, widens market participation, and enhances liquidity as token holders can manage their holdings without needing to buy the entire asset. Additionally, fractionalized assets can simplify the process of transferring ownership, as blockchain technology ensures that records are immutable and easily verifiable.

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