Cryptocurrencies linked to real-world assets (RWAs) are drawing scrutiny, as the International Organization of Securities Commissions (IOSCO) recently warned that these innovations might introduce new risks for investors.

In a report released on Tuesday, the global securities regulator highlighted that while many risks associated with tokenization fall under existing regulatory frameworks, new vulnerabilities may arise from the technology itself.

Wall Street Divided Over Crypto Tokenization

Tokenization—essentially the creation of blockchain-based tokens that represent real-world assets like stocks or bonds—has gained renewed interest throughout the year. New tokenized products are increasingly being marketed to the public via online brokers.

Tuang Lee Lim, chair of IOSCO’s board

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