
Tokenization is the process of taking real-world assets and having them represented by digital tokens that can be traded on a blockchain. Tokenization can be a valuable tool for automating business processes and facilitating investment in fractional portions of an asset. However, the success of any tokenization project depends on the laws applicable to the asset being tokenized and the terms and conditions governing the project. Contrary to what some might think, rights in the asset represented by a token do not generally transfer to a buyer on the sale of the token.
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