Simply put, tokenization is the process of wrapping or converting an asset into a digital token(s) that represent the true value of the underlying asset(s). Tokenization may be used to encrypt sensitive data and process large amounts of data at a faster and cheaper rate.
In theory, once an asset is truly tokenized, it can be transferred easily across a blockchain networks.
As of late, some of the most popular assets to be tokenized include treasuries, stocks, bonds, debt, and commodities. You can explore and track tokenized assets on RWA.XYZ.