Tokenization is redefining the boundaries of asset ownership. From real estate and fine art to carbon credits and private debt, real-world assets (RWAs) are being turned into digital tokens, creating a more liquid, fractionalized, and programmable economy.
But in the rush to onboard RWAs onto blockchains, many projects are overlooking one critical factor: insurance.
As infrastructure around RWA tokenization matures, so too must the safety nets that support it. Without robust risk transfer strategies, the very assets being tokenized remain exposed—undermining trust, scalability, and long-term adoption.
The Overlooked Risks Behind the Trend
Tokenizing RWAs introduces a hybrid risk profile. It combines traditional exposures (property damage, valuation disputes, fraud) with digital-native threats (smart contract bugs, custody breaches, regulatory uncertainty).
Yet many protocols, marketplaces, and custodians still assume that decentralization or code audits alone can manage these risks. That’s a dangerous misconception.
Some common blind spots include:
Custody & Access Risk: Who holds the off-chain asset? How is the link between token and physical asset enforced?
Smart Contract & Oracle Failure: Price feeds, redemption mechanisms, and fractional ownership logic are vulnerable to manipulation or bugs.
Title & Ownership Disputes: For assets like real estate or art, legal title must be watertight—even when tokenized.
Cross-Jurisdictional Regulatory Gaps: Asset location, investor domicile, and token issuer may all sit in different jurisdictions.
Operational Risk: Whether it’s mismanagement, theft, or vendor failure, off-chain processes can compromise on-chain trust.
These aren’t theoretical concerns—they’ve already led to loss events in tokenized gold platforms, property token marketplaces, and DeFi protocols experimenting with yield-bearing RWAs.
Insurance: Not Just a Legal Requirement, But a Growth Enabler
Insurance in this space isn’t just about meeting licensing obligations or satisfying institutional investors. It’s about building resilience into the architecture of tokenized ecosystems.
When done right, insurance enables:
Investor Confidence: Coverage signals maturity, risk awareness, and readiness to scale.
Institutional Onboarding: Funds and allocators often require insured custody, contracts, or revenue.
Regulatory Alignment: Many jurisdictions view risk management protocols favorably in compliance reviews.
Business Continuity: When things go wrong, insurance buys time, reputation, and solvency.
But standard insurance products aren’t built for tokenization.
That’s where Continuum steps in.
How Continuum Bridges Tokenization and Insurance
At Continuum, we work directly with founders, structurers, and asset originators in the Web3 and fintech space to design tailored insurance programs that fit the layered nature of tokenized assets.
Depending on your RWA model, we help you secure:
Custody Insurance – For digital vaults or custodians holding real-world asset titles or representations.
Professional Indemnity – Covers platform mismanagement, structuring risk, and transaction errors.
Directors & Officers (D&O) – Protects founders and management against lawsuits tied to governance or investor claims.
Cyber & Crime Insurance – Protects platforms against hacks, social engineering, or internal fraud.
We also advise on policy stacking, cross-jurisdictional placement, and regulatory engagement, ensuring that your insurance strategy evolves with your roadmap.
Future-Proofing Tokenized Innovation
Tokenization is not just a technical challenge—it’s a trust challenge. And trust, in capital markets, is often anchored by risk transfer.
As RWAs move from pilot projects to trillion-dollar opportunity, those building the infrastructure—whether it’s vaulting systems, tokenization protocols, or investor platforms—must address the insurance blind spot early.
The alternative? Reputational damage, investor loss, and stunted growth.
At Continuum, we don’t just offer insurance. We engineer risk resilience for the next financial frontier.
Explore insurance solutions for tokenized assets at www.continuuminsure.com
