(Blockonomi) Blockchain technology promises to change many old technological and financial paradigms due to its uniquely transparent, immutable, and distributed structure. One of these advantages is tokenization, with the ability to inject liquidity into previously illiquid or otherwise cumbersome markets.

Tokenization converts the value stored in some object – a physical object, like a painting, or an intangible object, like a carbon credit – into a token that can be manipulated along a blockchain system. Blockchain’s ability to tokenize assets is almost limitless, but the assets can be grouped into three broad categories – intangible assets, fungible assets, and non-fungible assets.