Blockchain technology's potential to tokenize real-world assets, increasing liquidity and offering alternative funding sources, is being explored by more organizations. However, the process is complex and many businesses lack the knowledge to implement it. Tokenization involves creating blockchain-based digital tokens representing ownership of a physical asset, enabling businesses to manage and monetize high-value assets in low liquidity markets. Fractional ownership is a key benefit, allowing assets like hotels to be split into numerous tokens, each representing a share of the property. This makes investment more accessible and affordable, introducing more liquidity into asset markets.

The process of tokenizing a real-world asset involves several steps. Firstly, the asset must be identified and evaluated by third-party auditors. A suitable token type must then be chosen, with most real-world assets tokenized as Non-Fungible Tokens (NFTs) due to their flexibility and programmable nature. Legal requirements and regulations must be explored, and a tokenization platform that aligns with these rules selected. Businesses may also choose to create their own marketplace for tokenized assets, maintaining control over the process. The tokens are then minted, with the number created informed by the asset's real-world value. Smart contracts are programmed to ensure token holders receive regular dividends or payouts, and finally, the asset is tokenized and the tokens distributed on a decentralized marketplace.

Despite the potential benefits, the future of tokenization remains uncertain. As blockchain technology matures, tokenization may become more commonplace, increasing market transparency and liquidity. However, the complexity of the process and the lack of clear global regulations pose significant challenges.