AIGENSYN COO warns RWA investors may lack legal claims

AIGENSYN COO Jeff Amico stated that investors in RWA lending products might not have sufficient legal protection in default scenarios despite high yields. He noted that in certain RWA vault structures, investors receive yield-bearing stablecoins while the actual loans and collateral are held by a separate entity or special purpose vehicle. This arrangement means investors may lack direct legal claims against the borrower or the collateral. Amico emphasized that RWA investors should verify who is legally responsible for repaying the debt and whether rights to the collateral are properly established. He also highlighted the need for clear creditor rights and infrastructure to verify off-chain collateral and contract terms to support the growth of the RWA market.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.