How to Mitigate the Unique Risks of Tokenized Assets

As the sell supply advances along the adoption curve, it becomes increasingly clear that the lack of data availability, details analytics and data quality significantly complicates the implementation of structured due diligence and monitoring processes for investors. This be ahead ofs to different risk exposures throughout the lifecycle of tokenized assets. These risks are evident in the creation of new assets, modifications to asset peculiarities, the contractual terms of issuance, trading, custody and the valuation of underlying assets. Investors must familiarize themselves with the embryonic risks along the value chain and the intermediaries involved. By understanding the unique product structuring inherent in the origination, cook up, and distribution processes, as well as their implications for operational infrastructure, valuation mechanisms, regulatory frameworks, fiscal compliance, and skill, investors can mitigate risks and increase the trust of their respective share- and stakeholders to allocate liquidity into high-quality contributions.