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How Does the Custody Risk Change When a Treasury Holds Tokenized Real-World Assets?

It adds legal and counterparty risk from the off-chain custodian and issuer, which is tied to the physical asset's stability.
Greeks.Live12.11.25

How Does the Custody Risk Change When a Treasury Holds Tokenized Real-World Assets?

Holding tokenized real-world assets (RWAs) introduces a layer of 'legal and counterparty risk' from the traditional finance world. While the token is on-chain, its value is tied to an off-chain asset held by a centralized custodian.

The treasury must manage the risk of the RWA issuer defaulting, legal complications, or the token's peg breaking due to off-chain issues, in addition to standard smart contract risk.

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