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Tokenization
Tokenization is the process of creating a digital token that represents ownership of, or certain rights connected to, an asset. The asset itself might be real estate, a bond, a share, a commodity, a fund or another type of asset.
Why it matters to you
Tokenization allows ownership and financial rights to be represented digitally. Depending on how an asset is structured, this can make it easier to divide ownership, transfer interests, automate processes and connect traditional assets with blockchain based markets. The token is only part of the structure. Investors should also understand what the token legally represents and what rights come with it.
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