Tokenization

Foundations · Lesson 1.2

Tokenization means representing an asset, such as a US Treasury bill or a share of a private credit fund, as a token on a blockchain. A legal structure links the token to the asset, and the token becomes the record of who owns it. The asset does not change. What can change is how ownership moves: a token can settle within minutes, transfer outside banking hours where the rules allow it and be split into smaller units than the original instrument.

Wally’s note: same burrito. new tortilla.

The RWA is still the same asset. Tokenization changes how ownership is recorded and how it moves.

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