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- Withholding Tax Challenges: Investors outside the US face substantial withholding taxes on dividends, reducing total portfolio returns. In most countries, this tax can take up to 30% of income, while countries with tax treaties offer a reduced rate of 15%. This significantly impacts the returns on income-generating assets.
- Complex Account Management: Retail investors often struggle with the complexity of opening accounts, navigating trading platforms, and managing liquidation processes. These challenges can deter participation and limit investment opportunities, with issues including lengthy settlement processes and high currency exchange fees.
- Limited Access to High-Yield Investments: Many tokenization platforms are restricted to accredited investors and focus primarily on real estate projects. This limitation prevents regular investors from accessing high-performing assets like private equity, diversified stock funds, and hedge funds.
- Visibility and Access for Fund Managers: Funds not featured on mainstream platforms lack visibility and direct access to the general public, limiting their fundraising potential. This restricts their ability to attract investments and grow their funds.
