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What is Tokenization?

Crypto Terms Glossary: What is Tokenization?

Tokenization is the act of converting the value of a tangible or intangible asset into a token. The token itself is a piece of code made up of a distinctive asset reference, unique properties, and/or specific legal rights in accordance with the smart contract through which the token was generated. Once tokenized, an asset can be freely transferred, exchanged, or stored away in accordance with whatever digital platform(s) or marketplace(s) the asset's token was designed to be compatible with. Through tokenization, nearly any asset can be seamlessly integrated into the rapidly expanding ecosystem of blockchain networks and digital finance writ large.

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