Central banks are increasingly focusing on the risks associated with asset tokenization, as highlighted in a recent report from the Bank for International Settlements (BIS). The report emphasizes the transformative potential of tokenization in the financial sector, particularly in reducing transaction costs and increasing transaction speeds. However, both the BIS and the Financial Stability Board (FSB) have raised concerns about the potential risks to the financial system, including issues related to fragmentation and liquidity mismatches. The FSB noted that while tokenization is currently considered low risk to global finance due to its slow adoption, the finance industry is urged to proceed with caution. Discussions on the implications of tokenization were also a focal point at the recent RWA Summit in New York City, where varying perspectives on the technology were debated.