Asset tokenization is the process of converting ownership rights in a particular asset into a digital token on a blockchain. Ownership of the token represents ownership of the real world asset corollary. Tokenization of real-world assets enables new markets by decreasing barriers and frictions to information exchange and trade.
Securities Tokens are traditional financial securities designated by a cryptographic token on a blockchain ledger. These can include tokens which represent equity, bonds, fund units, etc… The ownership rights to the security instrument are written and recorded on the blockchain.
Tokenization of private securities can make capital formation more efficient, preserve information history about the asset, and unlock future secondary liquidity for investors.
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