JAKARTA \u2014 Asset tokenisation is seen as opening up new alternatives\nin digital investment by enabling certain assets or rights to be\nrepresented as tokens. This could broaden investor access, but requires\nclear product structures, transparent information and safeguards against\nrisks inherent in the underlying assets.<\/p>\n
The Financial Services Authority\u2019s (OJK) plans to regulate asset\ntokenisation are an important development in Indonesia\u2019s digital finance\necosystem. OJK is preparing a regulatory framework for tokenised asset\nofferings covering governance, offering mechanisms and consumer\nprotection.<\/p>\n
Asset tokenisation, or real-world asset (RWA) tokenisation, is the\nprocess of representing an asset or a specific right to an asset in\ndigital token form using technologies such as blockchain. Assets that\nmay be tokenised include securities, commodities and property, depending\non the product structure and applicable rules.<\/p>\n
One potential benefit of tokenisation is that assets can be divided\ninto smaller units through fractional ownership. This mechanism could\ngive investors access to certain instruments without requiring them to\nbuy the entire asset.<\/p>\n
Bittime Operations Director Ryan Lymn said the planned regulation\ncould help strike a balance between innovation and risk management. He\nsaid easier access must be accompanied by transparency and investor\nunderstanding.<\/p>\n
\u201cAsset tokenisation has the potential to open up access to a range of\ninvestment instruments through digital technology. However, this\ndevelopment needs to be supported by a clear regulatory framework,\ntransparent information and investor protection so that innovation can\ndevelop responsibly,\u201d Ryan said on Wednesday (21 October 2026).<\/p>\n
Although it offers opportunities, tokenisation does not automatically\nincrease liquidity or eliminate risks associated with the underlying\nasset. Accessibility and efficiency will still depend on the asset\u2019s\ncharacteristics, legal structure, trading infrastructure and market\nparticipation.<\/p>\n
Investors also need to understand the legal relationship between a\ntoken and its underlying asset, how assets are held and verified, the\nissuer\u2019s transparency, and the terms for resale or redemption. Liquidity\nand price volatility, technology security and smart-contract\nvulnerabilities must also be taken into account.<\/p>\n
\u201cDevelopments in digital investment are not determined solely by the\ngrowing number of available asset types, but also by the quality of\naccess offered to the public. Investors need adequate information to\nunderstand the products they choose and make decisions in line with\ntheir individual risk profiles,\u201d Ryan said.<\/p>\n
He said a digital format does not make an asset risk-free. Investors\nstill need to assess the quality of the underlying asset, the product\nstructure, the rights they receive, and potential market and technology\nrisks.<\/p>\n
\u201cTokenisation does not mean an asset becomes risk-free simply because\nit is available in digital form. Investors need to understand the\nquality of the underlying asset, the product structure, the rights they\nreceive, as well as liquidity and technology risks. Trust in the\nindustry must be built through disclosure and sound understanding, not\nmerely through ease of access,\u201d Ryan said.<\/p>\n
As tokenisation develops, products offering exposure to global\nfinancial instruments are also becoming available in digital form. One\nexample is tokenised stocks, products based on tokens and designed to\nprovide exposure to particular shares.<\/p>\n
Bittime offers a Tokenized US Stocks category that includes AAPLX,\nNVDAX and TSLAX, each linked to shares in Apple, Nvidia and Tesla.\nHowever, the legal structure of each token may differ and does not\nnecessarily confer direct share ownership.<\/p>\n
Voting rights, dividend rights, redemption mechanisms and legal\nprotections depend on the structure of each product. Investors should\ntherefore understand how a product works, its fees, associated rights\nand risks before trading.<\/p>\n
OJK\u2019s planned regulation indicates that tokenisation is receiving\nmore serious attention as Indonesia develops digital investment.\nRegulatory clarity, transparent information and the quality of\nunderlying assets will be important to ensuring broader investment\naccess is accompanied by adequate investor protection.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/asset-tokenisation-could-broaden-access-to-investment-1792569092", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }