Overview
- In a report published Tuesday, the global securities regulator said tokens tied to stocks, bonds and other assets could expose investors to risks not fully captured by current practices.
- IOSCO flagged ownership uncertainty arising from varied token structures, including confusion over rights to the underlying asset versus the token itself.
- The report warns that third-party token issuers create counterparty risk and that growing links to crypto markets could transmit shocks through spill-over effects.
- Adoption remains limited even as commercial interest grows, with new tokenized products appearing on online brokers and experiments by firms such as Nasdaq while other Wall Street players stay cautious.
- Efficiency claims are uneven because trading still depends on traditional infrastructure, and issuers rarely disclose measurable cost or speed improvements.