The process of tokenizing real-world assets is becoming increasingly popular in the blockchain space, offering a bridge between physical assets and digital tokens. This involves selecting a tangible asset, such as real estate, gold, or bonds, and completing necessary legal and operational steps off-chain, including valuation, legal ownership confirmation, and custody arrangements. Often, a legal entity like a special purpose vehicle (SPV) is established to hold the asset and facilitate its linkage to digital tokens. Tokenization is executed through smart contracts on blockchains like Ethereum, allowing the asset's value or ownership rights to be represented as digital tokens. These can be fungible tokens for divisible assets or non-fungible tokens for unique items. Fractional ownership is a key feature, enabling smaller investors to participate by purchasing tokens representing a portion of the asset. To ensure the tokens are backed by the real asset, custodians securely hold the physical asset, while oracles provide real-time data to maintain token value alignment. Redemption mechanisms and regular audits ensure transparency and trust, allowing token holders to redeem their tokens for the underlying asset or its cash equivalent, depending on the project's terms.