Summary
The article states that while tokenization may have some benefits, it does not solve liquidity or legality issues for private assets. Tokenization advocates ignore this problem because the assets being tokenized are usually simple debt or collateral instruments that are not subject to the same compliance and reporting standards as regulated securities.
Key Points
1. Tokenization alone does not address liquidity or legality concerns for private assets.
2. Tokenization presents new challenges in addition to its benefits.
3. RWA tokenization advocates often overlook the compliance and reporting standards that regulated securities must adhere to.