Fractionalized lending allows users to borrow and lend smaller portions of assets instead of needing to deal with whole units. In this setup, an asset, usually a high-value item or cryptocurrency, is divided into fractions. These fractions can then be used as collateral or traded independently.This method increases accessibility for borrowers and lenders. For instance, a borrower who can’t afford the full price of a valuable asset can utilize a fraction, securing the necessary funds without needing significant capital upfront. On the other hand, lenders can spread their risk and diversify their investment portfolios by lending smaller amounts across multiple borrowers.Fractionalized lending promotes liquidity and opens up opportunities for more individuals to participate in lending markets. It encourages a broader range of lenders, from small investors to larger institutions, to engage in lending activities while allowing borrowers to access funds more flexibly. Overall, this innovative approach aims to create a more inclusive financial ecosystem.