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Asset tokenization development refers to the process of converting ownership rights or assets into digital tokens on a blockchain or distributed ledger technology (DLT) platform. This transformative approach enables fractional ownership, increased liquidity, and easier transferability of traditionally illiquid assets such as real estate, art, or commodities.

Tokenizing an asset involves breaking down its value into smaller, fungible units represented by digital tokens. Each token typically represents a share of ownership or a claim to a portion of the underlying asset. These tokens are then recorded and managed on a blockchain, providing transparency, security, and immutability to the ownership process.

By tokenizing assets, traditional barriers to investment and trading are lowered, opening up opportunities for a broader range of investors to participate in previously inaccessible markets. Additionally, asset tokenization can streamline processes such as compliance, settlement, and transfer of ownership, reducing costs and increasing efficiency.