Tokenization refers to the process of creating a digital representation of a real-world asset, such as property, art, or stocks, on a blockchain or distributed ledger technology (DLT) platform. These digital representations are called tokens, and they can be bought, sold, and traded like cryptocurrencies.

Tokenization is a way to enable fractional ownership of an asset, which means that investors can purchase a portion of an asset rather than having to buy the entire thing. For example, a company could tokenize its shares, allowing investors to buy a fraction of a share rather than having to purchase a whole share.