Asset tokenization, as an emerging subfield of digital assets, is gradually receiving attention. Asset tokenization, which refers to placing the ownership record of traditional assets on the blockchain, has the potential not only to facilitate more efficient transactions, but also to democratize access to investment opportunities and provide traditional assets such as real estate and art. Illiquid asset classes bring more liquidity. The benefits of asset tokenization include democratization of access, market liquidity and efficiency, and security and transparency. However, asset tokenization also faces challenges such as regulatory uncertainty, market adoption and liquidity, current security risks, operational complexities, valuation issues, and more. Still, asset tokenization is considered one of the most exciting areas of blockchain technology and deserves attention.