According to Coinpedia, the Federal Reserve has released a working paper that highlights the advantages of tokenization of financial assets and real-world assets (RWA). The report points out that tokenization can lower investment barriers, promote standardization, improve liquidity, add new features, and promote lending. However, the report also warns that the redemption mechanism and liquidity of these assets may bring higher leverage risks and affect financial stability.
The report emphasizes the need for adequate regulation and supervision of the tokenized asset market to guard against potential risks.
