I get a lot of hate for saying that institutional investors would NEVER buy tokenized Real-World Assets
Institutional investors have a securities account with their prime-broker and can buy directly RWAs or acces them through securitization.
Why is tokenization NOT interesting for institutional investors?
Tokenization of RWAs happens through Special Purpose Vehicles (SPVs).
Issuers set up an SPV that buys, holds and manages the RWA, and then they tokenize the SPV.
No institutional investor would ever go through that process because it creates friction, makes everything very complex and increases costs.
Only crypto-native firms would buy tokenized RWAs because they can’t open a securities account with a prime-broker.
Watch my video 📹.
#realworldassets #rwa #tokenization #crypto #securitization
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