At Paris Blockchain Week, a panel challenged the common assumption that tokenizing real world assets (RWA) will automatically boost liquidity. Industry experts argued that simply moving assets like private credit or real estate—naturally low in liquidity—onto the blockchain does not itself create an active market.
Tokenization brings access, not instant liquidity
Speaking on the panel, Oya Çeliktemur, Sales Director for Europe, Middle East, and Africa at Ondo Finance, pointed out a notable misconception in the market. According to Çeliktemur, while tokenization can technically widen market access, the underlying liquidity of the asset remains unchanged if it was limited to begin with.
There is still a widespread belief that tokenizing an illiquid asset will magically make it liquid, but this is not accurate. Real estate and private credit never had high liquidity in the first place, explained Çeliktemur.
A similar perspective came from Francesco Ranieri Fabracci, Head of Tokenization Expansion at Tether. Fabracci said not every asset put on the blockchain becomes immediately tradable; rather, certain asset classes stand out in these new digital markets.
Fabracci emphasized that instruments such as government bonds, money market funds, and stablecoins—more standardized and widely accepted tools—have a greater potential to establish sustained liquidity in tokenized marketplaces.
Market surges but concentration persists
According to RWA.xyz data, the market for tokenized real world assets has experienced significant growth over the past year. As of April 16, 2025, the sector’s overall market capitalization stood at $8.8 billion. By April 16, 2026, that figure had soared to nearly $29.9 billion, marking more than a threefold increase.
A large part of this growth was driven by more standardized and easily traded assets like US Treasury bonds and commodities, which gained prominence thanks to greater investor understanding and wider market acceptance, industry observers noted.
By contrast, although segments considered less liquid have achieved high growth rates, their total volume remains limited. Tokenized real estate increased from about $35 million to $296 million, and private equity assets grew from $60 million to $223 million over the same period.
Liquidity challenges remain unresolved
Experts caution that the rise in market capitalization does not necessarily equate to higher liquidity. Issuing more assets can inflate total market value, but unless these assets are actively traded on secondary markets, liquidity stays constrained.
This ongoing challenge signals a shift in focus within the RWA sector. The priority is now moving from simply launching new tokenized products to ensuring these assets are genuinely tradable and attract a broad investor base.
