What RWA Tokenization Is Not

• It’s not a guarantee of liquidity — just because an asset is tokenized doesn’t mean it will be actively traded or quickly sold. Low liquidity remains a challenge in many RWA implementations. 4ire+2Three Sigma+2

• It’s not a magic bypass of regulation — security tokens remain subject to securities laws, compliance, and jurisdiction-specific regulations. Encyclopedia Britannica+2Wikipedia+2

• It doesn’t eliminate underlying risks of the real asset — market risk, asset deterioration, valuation uncertainty, custody risk still exist. Tokenization only overlays a digital representation on existing risk structures.

• It’s not necessarily simpler than traditional investing — while tokenization aims to reduce friction, successful RWA projects still require robust legal, custodial, and operational infrastructure —– otherwise, tokenization alone doesn’t solve structural asset problems.