Asset tokenization is the process of converting ownership rights in a particular asset into a digital token on a blockchain. These can include unique hash values that represent physical assets, financial instruments, real estate, equity, bonds, fund units, etc.
By switching to a digital token system, asset owners and investors can create new efficiencies like making assets more liquid by automating what was previously a cumbersome, manual process — while retaining the real-world characteristics of the underlying asset itself.
For investors, tokenization of assets allows them to own a part of that asset that they would have otherwise not been able to be a part of. For this reason, they are very much in demand with investors around the world.