Tokenization

Tokenization is the act of creating tokens on a blockchain that represent ownership of something. It’s done with a smart contract, which creates the tokens, keeps track of who holds them and enforces the rules for moving them. The thing being tokenized might be digital from the start, or it might be a traditional asset like a bank deposit, a fund, a bond or a building.

It helps to split the world into two sides. On the crypto side are assets that exist only on a blockchain, like bitcoin and ether. Their value comes from the network and what people will pay for them. On the tokenization side are real-world assets, often called RWAs. These already exist and have legal owners off the blockchain, and the token is a new way to record and move that ownership. Most banks and asset managers are working on this side, because it could make familiar assets settle faster, trade at any hour and be split into smaller pieces.

A tokenized asset is only as good as the link between the token and the real thing. Who holds the actual asset? What legal rights does the token give you? What happens if the blockchain’s record and the official record disagree? The rules don’t disappear either: as a US securities regulator put it in 2025, “tokenized securities are still securities.” How these questions affect you depends on your role, whether you issue the token, hold it or keep it safe for others. We look at specific assets in Real-world assets.