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Tristero Research warns of potential crisis in tokenized RWA loans
Tristero Research released a rather unsettling report. Real-world assets on the blockchain face something like a liquidity paradox. Curious.
Tokenization does not improve security. On the contrary. It seems that it could accelerate the transmission of risks when we talk about loans and real estate converted into tokens. This is not what many expected.
The report sees parallels with 2008. Slow variables. Defaults. Value changes. All of this could unleash a domino effect in the fast-paced blockchain markets. Liquidity collapses. On-chain liquidations.
And something new emerges: "RWA-squared" derivatives. It is not entirely clear what implications they will bring, but they seem to multiply the vulnerabilities of the system.
Experts are calling for attention. Robust oracles. Adequate guarantees. Regulatory compliance. Without these precautions, we could be facing a secondary lending crisis in blockchain. A warning that we may need to take seriously.