Tokenization is the process of converting ownership rights of assets into digital tokens on a blockchain, making trading and ownership easier and more secure. This process has gained popularity in the investment sector, with a global market cap of tokenized assets reaching $120 billion and an estimated $16 trillion market cap by 2030. Tokenization is viewed as a way to access new market segments and clients, increase market share, and mitigate risks through product diversification. However, regulatory ambiguity across regions and integration with traditional financial infrastructure are potential drawbacks that must be addressed to foster innovation. The UK government's Technology Working Group has issued two reports encouraging collaboration on innovation regarding tokenization capabilities, which is a significant move toward Investment Fund 3.0.