Industry executives at a major blockchain conference challenged a core narrative about tokenization. They argued that merely putting illiquid assets like real estate or private credit onchain does not automatically create liquid secondary markets. Data shows the tokenized real-world asset market grew threefold in a year, but expansion was led by standardized assets like Treasury debt, while traditionally illiquid segments remained comparatively small.
Industry executives stated that tokenization alone does not create liquidity for hard-to-trade assets. Speaking during a panel, Oya Celiktemur of Ondo Finance said there is still a misconception about this process. “I think there’s still this idea that tokenizing something illiquid will somehow magically make it a liquid asset, which is just not true,” said Celiktemur.
Francesco Ranieri Fabracci from Tether made a similar point regarding onchain liquidity. “It’s not that if you put an asset onchain, it will be liquid,” he argued. He stated that only a narrower set of instruments, including bonds and money market funds, are likely to achieve consistent liquidity.
The discussion comes as the tokenized real-world asset sector continues to expand. Attention is shifting from issuance growth toward whether tokenized products can achieve meaningful activity.
Data from analytics platform RWA.xyz shows the market expanded from $8.8 billion to roughly $29.9 billion in one year. The growth was led by relatively standardized and widely traded assets.
Tokenized US Treasury Debt and commodities accounted for a large share of the market. By contrast, categories typically associated with lower liquidity remained comparatively smaller.
Tokenized real estate increased from about $35 million to $296 million. Private equity rose from nearly $60 million to $223 million.
Other segments, including asset-backed credit and corporate credit, also expanded sharply. But market value alone does not prove liquidity, as outstanding value can rise even if secondary trading remains thin.
