Global Regulators Raise Concerns About Tokenization Risks in Finance

The International Organization of Securities Commissions (IOSCO) has issued a report warning that despite increasing interest in tokenized financial assets, their implementation poses new risks for investors. The report highlights concerns about ownership clarity, counterparty exposure, and potential contagion from crypto markets. While commercial interest in tokenization has risen this year with online brokerages offering tokenized products to retail investors, actual adoption remains limited across the financial sector.