Tokenization
The process of converting real-world assets into digital tokens on blockchain, enabling fractional ownership and enhanced liquidity.
What is Tokenization?
Tokenization refers to the process of converting real-world assets (RWAs) into tokens on a blockchain, enabling fractional ownership, enhanced liquidity, and global accessibility. For example, ETF tokenization converts exchange-traded fund shares into tokens, offering real-time trading and integration with decentralized finance (DeFi) protocols for yield generation or lending.
A prominent example is BlackRock’s BUIDL (BlackRock USD Institutional Digital Liquidity Fund), the first tokenized fund issued on the Ethereum network in 2024, providing qualified investors with U.S. dollar yields through tokenized shares managed by Securitize, with a TVL exceeding $2.2 billion across multiple chains in 2025.
The tokenized RWA market exceeds $230 billion, driven by platforms like Centrifuge and Ondo Finance, with oracles ensuring off-chain data integration.
Related Terms
FUD
An acronym for "Fear, Uncertainty, and Doubt," referring to the spread of negative or misleading information to influence perceptions and behavior in the digital asset market.
Bitcoin Standard
The Bitcoin Standard refers to a proposed monetary system where Bitcoin serves as the primary global reserve currency, replacing fiat currencies and traditional stores of value like gold.
CDP
A collateralized debt position, a smart contract mechanism in DeFi that allows users to borrow digital assets by locking collateral.
DAI/USDS
Stablecoins issued by MakerDAO/Sky, pegged to USD, backed by crypto or real-world assets.
Cross-Chain Swap
A cross-chain swap is the exchange of digital assets between two different blockchain networks, facilitated by bridges or protocols to enable interoperability.
Concentrated Liquidity (Uniswap)
Uniswap concentrated liquidity is a feature of Uniswap V3 that allows liquidity providers to allocate capital within specific price ranges of a token pair, increasing capital efficiency and potential returns compared to traditional AMM models.