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Tokenization

Real-World Assets • Bullion • Physical Collateral

asset-to-blockchain conversion

Tokenization is the process of converting rights to a real-world asset—such as land, gold, property, art, or income—into a digital token on a blockchain. Each token acts as a programmable representation of ownership, value, or access, enabling assets that were once illiquid or siloed to become tradeable, divisible, and integrated into decentralized systems.

Use Case: A physical gold bar stored in a vault is tokenized into 1,000 digital units, allowing multiple holders to trade, stake, or redeem fractional shares while maintaining full backing by real bullion.

Key Concepts:

  • Real-World Assets — Physical items like land or metals digitized and brought on-chain
  • Fractional Ownership — Shared access to tokenized assets without full-title requirements
  • Tokenized Property — Real estate or land issued as blockchain tokens
  • Asset Interoperability — Enables tokens to move freely across protocols or platforms

Summary: Tokenization transforms how ownership is created, exchanged, and stored. It bridges the physical and digital worlds, allowing assets like land, bullion, or income streams to flow seamlessly through Web3 systems. This opens the door to programmable yield, trustless inheritance, and broader access to wealth-building assets.

Feature Traditional Assets Tokenized Assets
Access Limited to high net worth individuals Open to global retail investors
Divisibility Whole units only (e.g., entire building) Split into fractional tokens
Transfer Process Lawyers, notaries, title agencies Smart contracts and peer-to-peer exchange
Programmability Not programmable Enables yield, access logic, or inheritance triggers

🗂️ Tokenization Types

Tokenization applies across asset classes. Below are the four primary categories in use today:

  • 🏞️ Real-World: Land, bullion, real estate, and physical goods digitized for ownership and yield.
  • 🎮 Digital: In-game items, domain names, digital art, and other native on-chain assets.
  • 🗠 Synthetic: Derivative tokens mimicking stocks, commodities, or indexes without holding them directly.
  • 🔑 Access-Based: Tokens granting permission to software tools, memberships, gated content, or DAO rights.

Each category reflects a different form of programmable ownership — some tradable, some utility-driven, some income-bearing.

🗂️ Tokenization Taxonomy
Real-World Land, gold, real estate, cattle, physical art — all tied to tokens with redemption or yield potential.
Digital On-chain native assets like digital collectibles, music NFTs, skins, usernames, and metaverse plots.
Synthetic Price-pegged assets like synthetic stocks, indexes, or commodities with no direct collateral.
Access-Based Permission tokens — DAO voting rights, membership NFTs, token-gated experiences or tools.
 
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