Can a Non-Fungible Token (NFT) Be Fractionalized, and What Standard Governs This?

Yes, an NFT can be fractionalized, which means dividing the ownership of a single, unique asset into multiple fungible shares. This is typically governed by a standard like ERC-1155 or by wrapping the ERC-721 token in a smart contract that issues new ERC-20 tokens representing ownership shares.

Fractionalization increases liquidity and makes high-value NFTs accessible to a broader range of investors. It essentially converts a unique asset into a set of tradable fungible tokens.