The nascent real-world tokenized assets track prices but do not provide investors the same legal rights as holding the underlying instruments.
Tokenized stocks and private equity may face several legal challenges, as the emerging real-world asset (RWA) sits in a gray zone that does not grant holders the same legal rights as traditional asset owners, according to industry executives and attorneys.
In an email to Cointelegraph, John Murillo, chief business officer of fintech company B2BROKER, said investors should understand the fundamental attributes of any prospective tokenized equity instruments, including any dividend streams, profit-sharing arrangements, or whether the tokenized RWAs simply provide capital appreciation to the holder. The executive said:
“There is no direct claim on company assets, no voting rights, and no access to internal financial information,” Murillo continued.
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