"Tokenization, to some extent resembles the process of Securitization." Is it True? What are the similarities of Tokenization and Securitization?

Yes, to some extent Tokenization resembles the process of Securitization as it is a process of converting tangible and intangible assets into blockchain tokens. Digitally representing anything has recently acquired a lot of traction. It can be effective in conventional industries like real estate, artwork etc. Following are some similarities between Tokenization and Securitization: (i) Liquidity: First and foremost both Securitization and Tokenization inject liquidity in the market for the assets which are otherwise illiquid assets. (ii) Diversification: - Both help investors to diversify their portfolio thus managing risk and optimizing returns. (iii) Trading: - Both are tradable hence helps to generate wealth. (iv) New Opportunities: - Both provide opportunities for financial institutions and related agencies to earn income through collection of fees.