Tokenized assets (including stocks) suffer from liquidity risk, meaning it depends highly from the availability of buyers and sellers. Also meaning higher spreads (Bid-Ask) and potential for higher premiums and discounts in their transactions.
Private companies also suffer for the same problems of the tokenized assets, mentioned above. And also they are extreme difficult to transfer out to other platforms due to their private nature.
Tokenized assets are proprietary assets, the investors also suffer from counterpart risk, meaning only the proprietary recognizes and accept those assets, becoming also difficult to transfer out to other platforms. Probably a few other platforms could accept those with some restrictions.
I’m not sure if the European financial markets regulators will accept tokenized assets for public-listed stocks offered to European retail investors. Even more tokenized assets for private stocks being offered to European retail investors, this is huge red flag for the regulators.
PS: I don’t discriminate Europe and UK, as for me, UK is part of European continent. Europeans regulators include UK’s FCA.