Centralization and the dark side of asset tokenization — MEXC exec
Stablecoins are the largest tokenized RWA niche, with a market cap of over $227 billion, followed by private credit at over $12.2 billion.
Tracy Jin, the chief operating officer at the MEXC crypto exchange, warns that tokenizing real-world assets (RWAs) carries a substantial amount of centralized risks that can lead to censorship, liquidity issues, legal uncertainty, cybersecurity problems, and asset confiscation through state or third-party intermediaries.
In an interview with Cointelegraph, the executive said that as long as tokenized assets remain under the purview of state regulators and centralized intermediaries, then “tokenization will simply be a new version of old financial infrastructure and not a financial revolution.” Jin added:
“If the property or company behind the token is local, in a country with an unstable legal environment or high political volatility, the risk of confiscation increases,” the executive continued.
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