Glossary of tokenization terms

Tokenization

The process of representing ownership or economic rights in an asset as digital tokens on a blockchain.

Real-World Assets (RWA)

Physical or traditional financial assets - like real estate - represented as blockchain tokens.

Fractional Ownership

A model where multiple investors each own a share of a single asset, such as a commercial property.

Security Token

A digital token that represents a regulated financial instrument, such as a share in a real estate offering.

KYC (Know Your Customer)

Identity verification required by regulation before an investor can participate in a financial offering.

Self-Custodial Wallet

A crypto wallet where the user, not a third party, controls the private keys and therefore the assets.

Account Abstraction

A blockchain technique that lets users interact with on-chain applications through familiar, password-like accounts instead of managing raw private keys.

REIT

A Real Estate Investment Trust - a traditional, exchange-listed vehicle for investing in income-producing real estate, often compared with tokenized real estate.