Asset tokenization leverages blockchain technology to represent ownership and rights associated with physical assets, such as real estate, art, or stocks, in the form of digital tokens. Each token can represent a share or a fraction of the underlying asset, facilitating easier transactions, transfer of ownership, and potentially increasing liquidity by allowing more investors to participate in markets previously limited to fewer participants. Tokenization can also enhance transparency and reduce fraud risks through immutability and traceability provided by blockchain.