Tokenization is one of many applications of public blockchain technology. In some cases, where existing “back office” processes are very cumbersome, moving asset administration onto blockchain infrastructure may create immediate efficiency gains. But for many types of assets—e.g., public equities—the current digital infrastructure works reasonably well, and it is not obvious that public blockchains would work any better. In these cases, the potential gains from tokenization may come from network effects: by moving the world’s assets onto a common platform we can potentially create a financial system with greater functionality, improved access, and lower costs.
From a crypto markets perspective, while a variety of assets may benefit from the tokenization trend, the one with the most potential may be the protocol that can serve as the unified platform for tokenized assets, investors, and related applications. At the moment, Grayscale Research believes the Ethereum blockchain has the best chance of serving this purpose in the future.
https://www.grayscale.com/research/reports/public-blockchains-and-the-tokenization-revolution