Suppose you have a property worth £1000,000.00 . Asset tokenization could convert ownership of this property into 1000,000 tokens — each one representing a tiny percentage (0.0001%) of the property. Let’s say you need to borrow £100,000.00 to increase the living size of the property, it wouldn’t make sense to sell your property because you are living there, but you still need the money. So instead, you issue tokens on a public distributed ledger like Polygon which allows people to freely buy and sell on a Token Exchange. When someone buys a Token, they buy 0.0001% of the ownership in the asset. 1000,000 tokens to become 100% owner of the property. You will sell £100,000.00 (100,000) worth of Tokens, the equivalent to 10% of the property price. The property valuation now stands at £1,100,000.00+. The asset owners remaining 90% stands at a minimum value of £990,000.00.  A 1.1% rise in the property value, will see the asset owners value back to £1000,000.00 but the property has increased in size, the rental value of the property has increased and the value of the property is significantly higher than before. The £100,000.00 worth of Tokens are now available to be held or traded publicly. The asset owner can buy back these Tokens from the Token Exchange. 

Since distributed ledger technologies are immutable, no one can erase the ownership of the investor who has bought the tokens, or in this matter, shares of a property. If we zoom in on how tokens are built, it becomes apparent that two kinds of cryptographic tokens exist: fungible and non-fungible. The token value is represented by the current market value of the property and the token can be resold on secure exchanges such as the LMVH Token Exchange.