The post Tokenization Amplifies Dollar Liquidity in Stablecoins, But Illiquid Assets Face Challenges: Securitize CEO appeared on BitcoinEthereumNews.com.

Tokenized assets liquidity remains a critical challenge despite improved accessibility through blockchain technology. Experts emphasize that tokenization alone does not make illiquid assets tradable without losses, focusing instead on amplifying liquidity in assets like stablecoins and U.S. Treasuries, which now represent billions in market value. Tokenization enhances access to real-world assets but inherits their inherent illiquidity. Liquidity provision is as vital as accessibility for tokenized investments to succeed. Stablecoins and tokenized U.S. Treasuries lead the market, with values exceeding $300 billion and $9 billion respectively, according to RWA.xyz data. Explore tokenized assets liquidity challenges and opportunities in 2025. Discover how blockchain is transforming real-world investments for broader access. Read now for expert insights on stablecoins and Treasuries. What Is the Role of Liquidity in Tokenized Assets? Tokenized assets liquidity refers to the ease with which digital representations of real-world assets can be bought or sold without significant price impacts. While tokenization improves accessibility for global investors, it does not inherently resolve illiquidity issues tied to underlying assets like real estate or collectibles. Securitize co-founder and CEO Carlos Domingo highlights that true liquidity requires robust market mechanisms beyond mere digitization. How Does Real-World Asset Tokenization Impact Liquidity? Real-world asset tokenization involves converting physical or traditional investments into blockchain-based tokens, enabling fractional ownership and easier transfer. However, as Domingo explains, “Providing liquidity to the asset class is as important as providing accessibility.” Illiquid assets, such as property stakes or rare collectibles like a tokenized Pokémon card, retain their trading challenges post-tokenization. Data from RWA.xyz shows that while the broader tokenized market grows, illiquid categories lag behind more liquid ones. Current trends favor assets with pre-existing liquidity. Stablecoins, pegged to fiat currencies and backed by cash or government securities, dominate with a market cap of approximately $300 billion. Tokenized U.S. Treasuries follow closely…

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Filed under: News - @ December 7, 2025 9:24 pm