The Hidden Risks of Tokenised Real-World Assets
Tokenising real-world assets (RWAs) has the potential to make investing more accessible by bringing assets such as real estate, bonds, commodities, and private credit on-chain. However, the sector also comes with several risks. Legal ownership can become complicated if regulations differ across jurisdictions, while the value of a token still depends on the underlying asset and its custodian. Investors also face smart contract vulnerabilities, cybersecurity threats, liquidity concerns, and the possibility of regulatory changes. As the RWA market grows, balancing innovation with investor protection will be crucial to ensuring long-term trust and adoption.
