the tokenized assets are only as good as their backing entity allows them to be. It's a centralized system with a facade of decentralization. Same applies to stablecoins.

You inherit all of the inefficiency of cryptocurrency and none of the decentralization. This is why the idea was abandoned back with colored coins in like 2013. With etherium, you inherit even more centralization due to the nature of the scripting system and PoS.

> It's a centralized system with a facade of decentralization. Same applies to stablecoins.

Centralized assets in an on-chain wallet are much more useful than in the traditional financial system, for many reasons, but it comes down to friction reduction.