The tokenisation of assets is the process of issuing a
blockchain token that digitally represents rights to, or a unit
of ownership in, an underlying real world asset. The token
might represent a share in a company, a real estate-backed
bond, or participation in an investment fund. Equally, it might
be linked to a less liquid asset, like a royalty, art work or a
Tokenisation has great potential to make the industries it
disrupts more accessible and investment in the underlying
assets more efficient. These advantages will be most apparent
in asset classes that are relatively illiquid and can therefore
benefit from lower financial barriers to entry and greater
Indeed, some commentators believe that it is only a matter
of time before every asset class – and a significant
proportion of global GDP – is digitised.
Why tokenise an asset?
Taking real estate as an example, the ability...