According to CoinMeta, as reported by Coinpaper, token assets do not automatically protect your investments in the event of the issuer’s bankruptcy. The handling of tokenized stocks, bonds, and funds in the event of an issuer’s failure varies. Tokenized government bonds can be transferred quickly on the blockchain, and tokenized stocks can be traded around the clock, but none of these address the most important question: what do you legally own if the issuer goes bankrupt? The answer depends on the legal structure behind the tokens. The U.S. Securities and Exchange Commission (SEC) now clearly distinguishes between tokenized securities sponsored by issuers and tokens created by independent third parties. In the issuer-sponsored model, the blockchain records may be part of the issuer’s official ownership system. However, in third-party tokenization, tokens may merely represent contractual claims, and holders face bankruptcy risks associated with intermediaries. Blockchain tokens are ultimately digital records, and their economic value comes from legal arrangements that link these records to assets outside the blockchain, such as stocks, government bonds, real estate, credit, or investment funds.