Chapter 3 : “Digital Assets and Tokenization” unpacks the concept of tokenization and how in-game items, currencies, and identities are being represented as tradeable, ownable digital tokens. Readers will explore how NFTs and blockchain-based assets enable the exchange of real-world value, creating new monetization models for both developers and players. The chapter explores the rise of secondary markets where virtual items are bought, sold, and traded across platforms, introducing the concept of interoperability and ownership beyond a single game. It also examines the regulatory complexities emerging around digital asset markets, including legal frameworks, financial oversight, and consumer protection. As the lines blur between virtual and real-world economies, this chapter provides a critical foundation for understanding how tokenized ecosystems are reshaping identity, commerce, and the future of play.