Uniswap founder Hayden Adams emphasized that tokenization is set to transform liquidity in both cryptocurrency and traditional markets, while automated market makers (AMMs) remain at a relatively early stage in their development. In a post on X dated August 25, Adams noted that although AMMs already facilitate billions of dollars in daily transactions, the sector is still just beginning to realize its potential.
The rise of tokenized real-world assets
AMMs allow decentralized exchanges to provide pooled user liquidity and set asset prices algorithmically, eliminating the need for traditional order books. The Bank for International Settlements (BIS) reported in a November 2024 paper that AMM-based decentralized exchanges, such as Uniswap, process over $10 billion in digital asset trades each day.
As more real-world assets (RWAs) transition onto public blockchains, dependable liquidity solutions like AMMs are expected to become increasingly important. They remain among the few mechanisms that can scale liquidity services for tokenized bonds, funds, and other traditional financial instruments.
AMMs have already enabled billions in asset transfers, yet tokenization is only starting to impact global liquidity management.
Coinbase Research calculated that approximately $18 billion in distributed RWAs—excluding stablecoins—were hosted on public blockchains as of January 2026, an increase of 18 times compared to 2022. The majority of these tokenized assets comprise US Treasuries, with BlackRock’s BUIDL fund holding more than $2 billion, accounting for nearly a quarter of all tokenized US Treasuries.
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AAPL| Year | RWAs On-Chain (Excl. Stablecoins) | Tokenized US Treasuries (BUIDL Fund) |
|---|---|---|
| 2022 | $1 billion | N/A |
| 2026 (Jan) | $18 billion | $2 billion |
Mini dictionary: BlackRock BUIDL fund, a tokenized fund launched by asset manager BlackRock, invests in US Treasuries and enables on-chain access for digital asset managers and institutional clients.
Regulatory clarity is emerging globally. In the United States, the introduction of the 2025 GENIUS Act and SEC reform under Paul Atkins are shaping a friendlier environment for digital and tokenized assets. The European Union’s MiCA framework, its DLT pilot regime, Singapore’s Project Guardian, and the UAE’s VARA regulations are all contributing to the formation of regional tokenization centers.
Market infrastructure is evolving to support these developments. The Depository Trust & Clearing Corporation (DTCC), a central provider of post-trade market services in the US, disclosed on July 15 that it has tokenized assets in its depository for live production trading with over 30 financial institutions. DTCC plans to formally launch its tokenization services in October 2026.
Mini dictionary: DTCC (Depository Trust & Clearing Corporation) is a US-based central clearing and settlement organization, playing a key role in processing securities transactions and recently expanding into tokenized assets.
AMMs remain concentrated and face liquidity challenges
Despite advancements, Adams described AMMs as still early in their evolution. BIS found that on Uniswap V3, 65% to 85% of liquidity is provided by a small group of professional participants. These actors—the so-called liquidity specialists—function similarly to traditional market makers and earn higher returns compared to retail liquidity providers.
While AMMs have improved market participation, the concentration of liquidity among specialists mirrors practices in legacy financial markets. Tokenizing assets does not, by itself, guarantee ready liquidity or broad tradability. Tokenized funds and bonds remain mainly accessible to accredited investors, and secondary trading is often limited.
Tokenization increases asset transferability, but seamless trading and deep liquidity require active market makers and supportive market infrastructure.
According to Cryptopolitan, tokenization allows assets to be moved on-chain, but genuine liquidity—where assets can be easily bought or sold—demands robust market-making and two-sided quoting from investors willing to hold inventory.
Regulatory uncertainty for on-chain trading
The legal framework around AMMs hosting tokenized securities continues to develop. In a letter to the US SEC on March 30, 2026, the Securities Industry and Financial Markets Association (SIFMA) urged the regulator to focus on the functions performed by protocols rather than their decentralized design. SIFMA cautioned that activities like order routing, execution, price discovery, and settlement would likely fall under existing securities laws.
The association also indicated concerns regarding slippage, liquidity provider incentives, the pseudonymous nature of trading, and the limited ability to surveil crypto markets for manipulation.
Ultimately, the regulatory resolution will influence the development of tokenized asset markets. The DTCC’s upcoming spot trading service signals that the SEC’s approach to AMMs may determine whether innovations in market-making occur on decentralized platforms or within regulated exchanges.
