Tokenisation Is Growing, But What Are the Risks?
Tokenising real-world assets can make assets such as bonds, property, commodities and other investments easier to transfer and potentially more accessible. But putting an asset on a blockchain doesn’t automatically eliminate the risks attached to the underlying asset. Investors still have to consider ownership rights, regulation, custody, valuation and what happens if the company managing the asset fails. There is also the question of whether a token genuinely represents the real-world asset it claims to represent. As tokenisation expands, should investors focus more on the blockchain technology or on the legal and financial structure behind the token?
