Tokenizing physical things is kind of dumb for one reason: it's not trustless and it relies on there being a big mean cop somewhere in the transaction. Say i tokenize my couch and then sell you the the token. Suppose you show up to my house to claim your couch. I can tell you no. You can then sue me and try to get the state to send a big mean cop to get it, or it's equivalent in cash.

I've yet to see a scheme that makes this trustless somehow. If you don't have that you don't have anything.