Can ERC-20 Tokens Represent Ownership of a Physical Asset?

Yes, ERC-20 tokens can represent ownership of physical assets, a process called tokenization. However, they typically represent fractional or pooled ownership, as the fungibility means all tokens are the same.

For unique physical assets like a single piece of art, the non-fungible ERC-721 is more appropriate. ERC-20 is often used for tokenized real estate funds or baskets of commodities.