Real-world asset tokenization is the process of creating a digital representation of an asset on a distributed ledger, typically a blockchain. The resulting token reflects certain rights attached to the underlying asset through an established structure, such as a special purpose vehicle (SPV), trust, or fund vehicle.

Tokenization does not alter the economic terms of the underlying asset. It provides a different operational environment, one where issuance, investor onboarding, registry management, servicing, and reporting can be coordinated within a shared digital infrastructure.

Tokenization also supports fractionalization. In a regulated format, a token may represent a defined portion of the underlying asset, which can support more flexible distribution models while remaining within established regulatory boundaries.