Tokenized Asset Risk Metrics (TARM): A Framework for Institutional Risk Assessment in Tokenized Real-World Assets

The rapid growth of tokenized real-world assets has created new opportunities for financial innovation while simultaneously introducing complex structural and governance risks. Existing risk assessment approaches in traditional finance and blockchain research often address these risks in isolation, limiting their usefulness for institutional decision-making. This paper introduces Tokenized Asset Risk Metrics (TARM), a transparent, semi-quantitative framework designed to evaluate the institutional suitability of tokenized assets at a given point in time. TARM integrates financial, legal, operational, and on-chain governance risks using a structured scorecard and a dominance-based aggregation rule, in which unresolved critical risks constrain overall suitability. Rather than predicting prices or returns, the framework focuses on assessing whether tokenized assets can withstand institutional scrutiny under legal, regulatory, and operational stress. The proposed methodology is demonstrated through comparative case studies of tokenized gold, tokenized bonds, and tokenized real estate. The results show systematic differences in structural risk profiles across asset classes, with governance and legal enforceability emerging as persistent constraints on institutional adoption. By emphasizing transparency, interpretability, and reproducibility, TARM provides a practical foundation for risk screening, advisory support, and future regulatory analysis in tokenized financial markets.