Tokenized Assets Need More Than Blockchain
Tokenizing real-world assets like stocks, funds or real estate expands global investor access, but turning an asset into a digital token does not automatically create a functioning market.
In a recent discussion, Vladimir Tikhomirov, founder of Theorem, highlighted the critical infrastructure gaps still hindering the full potential of tokenized finance.
The primary bottleneck remains liquidity. Without liquid secondary markets, investors risk getting locked into illiquid holdings subject to long redemption windows. True secondary trading is necessary to enable continuous price discovery, allow risk management and narrow spreads.
Furthermore, robust pricing relies on combining initial issuer valuations with active open-market trading.
On the settlement side, multi-chain deployment is easily managed via arbitrage, though cross-border regulatory compliance remains complex. On-chain cash equivalents are also shifting toward yield-bearing tokenized US Treasury bills over traditional stablecoins to optimize capital efficiency.
Ultimately, on-chain markets will win by offering superior flexibility such as 24/7 trading, composable collateral and custom pairs, provided developers build the necessary lending protocols, exchanges and liquidity foundations.
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Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.
