Tokenization
The process of converting ownership rights in an asset into digital tokens on a blockchain, enabling fractional ownership and programmable compliance.
Full Definition
Tokenization transforms traditional assets—real estate, company equity, art, funds—into digital tokens representing fractional ownership shares. Each token is backed by the underlying asset and carries legal rights (dividends, voting, proceeds). Blockchain tokenization enables 24/7 trading, instant settlement, fractional ownership in small denominations, automated compliance, and global accessibility while maintaining regulatory compliance.
Why It Matters
Tokenization is what makes previously illiquid assets tradeable. That $10M commercial building? Divide it into 10,000 tokens and suddenly accredited investors can own a piece for $1,000. That private equity fund with a $500K minimum? Tokenize it and drop the threshold to $150K.
On Sails.to, tokenization creates CrossSecurities within legal SPV structures. Your CrossSecurities represent real, legally enforceable ownership—not just a database entry, but a smart contract backed by a Wyoming DAO LLC. And they can be held on-chain or CrossConverted to bankable ISIN form.
Related Terms
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