Tokenization
/ˌtoʊkənɪˈzeɪʃən/
Definitions
- (n.) The process of converting rights or assets into digital tokens on a blockchain or other digital ledger.
The tokenization of real estate assets allows easier fractional ownership and transferability.
- (n.) The legal practice of dividing and representing an asset or right through tokens to facilitate ownership, transfer, or enforcement.
Tokenization in securities law enables compliance with regulatory frameworks while utilizing blockchain technology.
Related terms
See also
Commentary
In legal contexts, tokenization often emphasizes regulatory compliance and asset representation rather than purely technical aspects.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.