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Tokenization
Assets and ownership

Tokenization

The process of representing a real-world asset, like a property, a bond, or a fund share, as a digital record on a blockchain. Tokenization does not change what the asset is. It changes how ownership is recorded, transferred, and verified.

TradFi equivalent
In traditional finance...
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TradFi equivalent
Issuing a share certificate. The process of taking an ownership stake and converting it into a transferable record. The certificate does not change what you own. It is the mechanism by which ownership is recorded and can be exchanged. Tokenization does the same thing for a wider range of assets.
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Analogy
In everyday terms...
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Analogy
The moment you hand over your coat and receive a ticket in return. The coat stays at the counter. The ticket is what you carry to reclaim your coat. The claim ticket is like the token: it represents the asset without being the asset itself.
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