The International Organization of Securities Commissions (IOSCO) has published a comprehensive report on the tokenization of financial assets, identifying significant legal and infrastructure challenges. Despite growing interest, the report reveals that 91% of jurisdictions are at 'zero or very limited' stages of adoption. Key issues include legal uncertainties, settlement bottlenecks, and potential contagion risks between traditional finance and crypto markets. The report suggests that tokenization represents an incremental evolution rather than a revolutionary shift, with traditional financial infrastructure continuing to play a crucial role. IOSCO emphasizes the need for clearer legal frameworks and improved infrastructure to facilitate broader adoption of tokenized assets.