4. Security Risks: Although blockchain is generally secure, tokenized assets can be vulnerable to hacks, fraud, and technical failures. Loss of private keys, which grant ownership to tokens, can result in permanent loss of assets.
5. Asset Valuation Issues: Determining the value of tokenized assets, especially fractionalized ones, can be difficult due to the lack of standardized valuation methods and market volatility.
6. Intermediary Dependence: In many cases, third parties (like custodians or legal frameworks) are still required to manage the link between the physical asset and the digital token, which can introduce inefficiencies and trust issues.

These challenges need to be addressed as the ecosystem for RWAs evolves.

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