Grayscale Report: Tokenization is one of the many applications of public blockchain technology

The grayscale release research report states that tokenization refers to the registration of asset ownership on blockchain infrastructure. In a tokenized form, assets can benefit from the functions of the blockchain, including more efficient settlements and the ability to interact with smart contracts. In most cases, modern financial systems are already quite efficient, so tokenization itself may not immediately bring about efficiency improvements. Instead, we believe that the main benefits may come from integrating users, assets and applications onto a common global platform. From the perspective of crypto markets, although various assets might benefit from this trend towards tokenization, those with greatest potential are likely protocols capable of providing a universal global platform. Currently Grayscale Research believes Ethereum's blockchain is most likely to achieve this in future. Furthermore, according to the report,the first application for tokenization technology was stablecoins which tokenize one of simplest and most liquid assets: cash. Following stablecoins came gold as another widely adopted asset for tokenization.The latest wave of tokenisation has mainly focused on two different markets: US Treasury bonds and closely related assets along with credit products.