Asset tokenization is the process of creating a digital token that maps to a physical asset and allows the value of the physical asset to be transferred into the digital token.

This makes ownership easier to track and transfer while improving transparency and security. Digital tokens are created using blockchain infrastructure, which makes ownership tracking and transfer visible and verifiable.

Tokens are created for assets that are interchangeable and divisible. Examples include commodities such as gold, oil, food grains, and financial instruments.

Tokens are created for assets that are unique, non-interchangeable, and non-divisible. Examples include artwork, real estate, patents, trademarks, and copyrights.

• Commodities: gold, silver, oil, grains
• Financial and intellectual-property assets: patents, royalties, copyrights, trademarks
• Real-world items: fine art, automobiles, FMCG products, real estate