Tokenization's RWA Reality: Experts Slam Liquidity Gaps and Access Limits
A new report reveals tokenized real-world assets (RWAs) are booming in value but choked by illiquidity and restricted access. Experts point to infrastructure gaps and a focus on institutional issuance over public trading as key culprits. The market is growing, but the promise of broad RWA adoption remains distant.
The tokenized RWA market is a tale of two cities: $60 billion in value locked across 7,000 products, yet 910 assets worth $32.9 billion saw zero weekly transfers. This isn't a liquidity crisis, say some, but an early infrastructure phase where institutional issuance and settlement took priority over public trading. Only 62 assets hold 88% of the total value, with five products dominating half the market. The report highlights a stark access problem: 97% of the market is off-limits to US retail investors, with only $1.7 billion legally accessible. While tokenized stocks are multiplying, 59% offer synthetic exposure, not true ownership. Experts argue that predictable execution and source-level tokenization are crucial for unlocking true RWA potential, especially for active trading and complex assets beyond US Treasuries.