> For the complete documentation index, see [llms.txt](https://vesta-group.gitbook.io/vesta-group/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://vesta-group.gitbook.io/vesta-group/introduction/overview-of-tokenization/what-is-tokenization.md).
# What is Tokenization?
In simple terms, tokenization is the process of taking an asset and representing it digitally through tokens on a blockchain. These tokens are cryptographic units that serve as a representation of ownership, value, or rights. For example, a company can tokenize its real estate portfolio, with each token representing a fractional share of property ownership. This enables investors to buy, sell, or trade these shares, bringing liquidity to traditionally illiquid markets.
The tokens can represent various asset classes:
\- Real estate: Properties or developments can be tokenized to allow fractional ownership.
\- Securities: Equity shares, bonds, and other financial instruments can be tokenized.
\- Commodities: Physical assets like gold, oil, or agricultural products can be digitized.
\- Art and Collectibles: High-value art or rare items can be fractionally owned by multiple parties.
\- Intellectual property: Patents, copyrights, or licenses can be tokenized and traded as digital assets.
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