Subject: Asset Tokenization
I'm always intrigued by new financial terms. What in the world is "asset tokenization"?

https://gemini.google.com/app/...

Asset Tokenization is the process of issuing a digital token that represents ownership rights or fractional interest in a real-world asset or a financial instrument. An asset (e.g., real estate, fine art, a corporate bond, or private equity) is registered on a blockchain as a digital token. The token's smart contract embeds the asset's characteristics, ownership rules, and trading conditions. The token represents a claim on or a share of the underlying asset.

Traditionally illiquid assets can be broken down into smaller, tradable tokens (fractional ownership), making them easier to buy and sell. [end quote]

I don't see how this is different from traditional record-keeping of ownership except that contracts (such as interest payments) can be automated and potentially faster. But the tokens themselves would represent illiquid assets and presumably would trade on the open market. There's no guarantee that they would hold their value.

https://www.wsj.com/finance/cu...


Scaramucci-Backed Crypto Treasury Company Launches With $550 Million Fundraising Plan
AVAX One plans to tokenize traditional financial assets on the Avalanche blockchain

By Vicky Ge Huang, The Wall Street Journal, 9/22/2025

Anthony Scaramucci and crypto investment firm Hivemind Capital are investing in a new company that intends to buy digital tokens issued on the Avalanche blockchain, the first of its kind. ...

Launched in 2020, the Avalanche blockchain is a high-speed network used by various Wall Street banks and asset managers. The AVAX token has a market cap of about $14 billion. ...

AVAX One aims to own more than $700 million in AVAX tokens and tokenize, or represent traditional assets to be traded, on the Avalanche blockchain. Over the long term, it plans to acquire fintech and insurance companies and move them to the Avalanche network....

The rush to bet on tokenization follows Trump’s signing of the Genius Act, which establishes a regulatory framework for tokenized dollars known as stablecoins. The landmark measure has unleashed a wave of efforts to put everything from individual stocks to funds and real assets on a digital ledger....

Investors’ enthusiasm for so-called crypto treasury companies has waned. Some 25% of all bitcoin treasury stocks are trading below the total value of the tokens they hold... [end quote]

First of all, I wouldn't trust Anthony Scaramucci with $5 to buy me a cup of coffee, let alone with over half a million dollars. I can't imagine who would send this guy real money in exchange for tokens.

The speculative schemes that attract money, such as meme tokens, SPACs, etc. are just an indication of too much money sloshing around in the financial system. It's a symptom of a late-stage bubble.

I wouldn't touch this with a 10 foot pole.
Wendy