Golden Finance reported that the Organization for Economic Cooperation and Development (OECD) report analyzed the reasons why tokenization has not become more popularized faster, pointing out that although tokenization brings efficiency improvements, securities settlement improvements and innovation opportunities, it faces many challenges. The report mentioned that the lack of a sufficient investor base is a major obstacle, resulting in insufficient liquidity and making issuers cautious about tokenization. The issuance of sovereign bonds can help promote tokenization, as in the case of Slovenia. At the same time, the OECD emphasized that quasi-sovereign issuers such as the World Bank and the European Investment Bank are relatively active, but liquidity problems are mostly solved by integrating with traditional systems. However, this also weakens the potential advantages of tokenization. Another challenge is the “chicken or egg” problem of network effects. When network effects have not yet emerged, it is difficult for investments to prove their value. Additionally, many institutions face technical debt and lack the funds to update to distributed ledger technology (DLT).