Tokenization

Tokenization is the conversion of real-world or digital assets into blockchain tokens. When something is “tokenized” it is put “on chain”—shorthand for being represented on a blockchain.

Everything from food and wine to carbon credits and parking spaces have been tokenized, making “tokenization” one of the few Web3 buzzwords to gain traction outside the industry.

In a recent report, Bank of America has even argued that in the “not-too-distant future” (5-15 years) tokenization will be so ubiquitous that tokenized assets and token portfolios (one’s holdings of tokenized assets) will simply be called “assets” and “portfolios”. The bank has also argued that tokenization will achieve mainstream adoption more rapidly than television and email did, and predicts the value of tokenized assets to reach 10% of global GDP by 2030.

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