International · Explainer
Explainer: What Is Tokenization of Real-World Assets?
How traditional assets such as bonds, funds and deposits are represented on distributed ledgers — and why institutions care.
Last reviewed 23 Oct 2026 by the Fintech Headlines desk against the official sources listed below.
The idea
Tokenization means representing ownership of an asset — for example a bond, a money-market fund share or a bank deposit — as a digital token recorded on a distributed ledger.
Proponents point to faster settlement, programmability and the possibility of atomic delivery-versus-payment. Open questions include legal finality, interoperability between ledgers and the settlement asset used.
Policy work
Central banks and international bodies such as the Bank for International Settlements have published research and pilots on tokenised deposits and wholesale settlement.
Official sources
This guide is general information, not legal advice. Rules change; confirm current requirements with the competent authority or qualified counsel.