Imagine you have a farm worth US$10 million. In the blockchain space, tokens are used to represent physical and digital assets as well as a unit of value in a particular system, such as an ownership stake or a voting right. In the payment sector, tokenization involves using tokens to replace cloud sensitive data. Royal Mint Gold (RMG) is a gold tokenization project with backing from the Royal Mint of Great Britain. Tokenization is increasingly prominent in the precious metals space.

An NFT of LeBron James doing a dunk recently sold for over US$200,000. The National Basketball Association famously went all-in on NBA Top Shot, a crypto collectibles venture that allows fans to trade numbered versions of specific, officially-licensed and tokenized video highlights. Tokenization is now a fixture in the virtual gaming industry. The global tokenization market is projected to surge to US$4.8 billion by 2025, up from US$1.9 billion in 2020, with a compound annual growth rate of 19.5%. Tokenization is disrupting the way we invest in assets, and companies are increasingly seeing the token economy as a way to create new markets and increase sales. Almost any asset can be tokenized nowadays, from artwork to gold to real estate. Tokenization eliminates territorial barriers and intermediaries while enabling fractional ownership of assets - which opens the market to small investors. In its simplest sense, tokenization is the conversion of physical or virtual assets into digital units that can be bought and sold. Benefits of blockchain-based tokenization.

The increasing popularity of non-fungible tokens (NFTs) - epitomized by digital artist BeepleвЂ™s recent US$6.6 million sale of a Donald Trump NFT and the National Basketball Association allowing fans to buy NFT video clips of their favorite stars - has also opened new markets and has made blockchain-managed ownership of collectibles and other unique assets possible. Tokenization offers a new way of digitizing ownership rights and doing business. For the majority of the worldвЂ™s population for most of history, because of the high cost, entrance into this world was near impossible. With several go-betweens and time-consuming steps, investing in and managing assets also historically required a large outlay of money upfront. Buying into and managing assets - whether itвЂ™s real estate, bonds, art or other collectibles - traditionally was a difficult endeavor.

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