What about regulatory and counterparty risk?

[madmax]

Physical metals have established legal frameworks and insurance-backed custodians. Crypto metals rely on smart contracts and issuer transparency, exposing users to hacks, bridge exploits, or insolvency. Regulatory clarity is evolving, particularly for tokenized assets used in cross-border transactions.

[jacson4]

Tokenized metals face more evolving regulations than traditional bullion markets.

[kelson10]

Counterparty risk depends on custodial transparency and blockchain auditability.