[Analysis] FSB warns tokenised liquidity could be illusory - Izabella Kaminska

The Financial Stability Board recently issued a report pointing out the real limitations of tokenization, according to the Financial Times. Tokenization artificially liquefies illiquid assets like real estate, creating a gap between how assets are valued and how that value can be captured. "In particular, risks could arise where there is a liquidity mismatch between the token and the underlying asset," the FSB writes, "or where investors have limited understanding of products packaged into a token." Governance and accountability issues are added to the aforementioned problems. Holding keys and software bugs create a whole new world of accountability problems regular assets do not possess.