"Tokenization is some extent resembles the process of securitization." In the reference of this statement, discuss similarities of tokenization and…

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.