Fractionalization

Fractionalization is the process of dividing a high-value asset, such as real estate, fine art, or a large-denomination treasury security, into smaller, more affordable, and tradable units, most commonly achieved through the issuance of digital tokens on a blockchain, thereby democratizing investment access and enhancing market liquidity. This mechanism transforms illiquid assets into divisible digital securities, allowing a broader base of investors to own a proportional share of the underlying asset and its associated economic rights.