Tokenization

Also known as: tokenization, tokenized asset, digital tokenization

The representation of an asset, right, claim, or access credential as a digital token.

Definition

Tokenization uses digital tokens to represent ownership interests, usage rights, access permissions, claims, or economic exposure. It is common in blockchain discussions, but it is not the same as owning the underlying income-producing digital property.

Example

A token that represents fractional exposure to an asset is tokenization. Owning the website, content, domain, and revenue accounts directly is a different ownership model.

Important Context

Tokenization changes the wrapper around an asset. It does not automatically improve the asset's economics, legal treatment, liquidity, or leverage profile.

Related Terms