Tokenization's Impact on Asset Liquidity Debated at Paris Blockchain Week
Industry leaders at Paris Blockchain Week have challenged the notion that tokenization inherently enhances the liquidity of traditionally hard-to-trade assets. According to Cointelegraph, executives argued that simply placing private credit, real estate, or other illiquid products on the blockchain does not automatically create active secondary markets.
During a panel discussion moderated by Cointelegraph CEO Yana Prikhodchenko, Oya Celiktemur, Ondo Finance's sales director for Europe, the Middle East, and Africa, highlighted a common misconception regarding tokenization. Celiktemur stated, "I think there’s still this idea that tokenizing something illiquid will somehow magically make it a liquid asset, which is just not true." She emphasized that assets like real estate and private credit have historically lacked liquidity.
Francesco Ranieri Fabracci, head of tokenization expansion at Tether, echoed this sentiment, noting that not all assets become liquid simply by being placed on the blockchain. Fabracci argued that only specific instruments, such as bonds, money market funds, and stablecoins, are likely to achieve consistent liquidity in tokenized markets.
The conversation comes amid the ongoing expansion of the tokenized real-world asset (RWA) sector, which is shifting focus from issuance growth to whether these tokenized products can achieve significant activity beyond limited distribution channels. Data from RWA analytics platform RWA.xyz indicates that the tokenized RWA market grew from $8.8 billion on April 16, 2025, to approximately $29.9 billion by April 16, 2026, more than tripling in size over the year.
This growth was primarily driven by standardized and widely traded assets, with tokenized US Treasury Debt and commodities accounting for a substantial portion of the market. In contrast, categories typically associated with lower liquidity, such as tokenized real estate and private equity, remained smaller despite strong percentage growth. Tokenized real estate increased from about $35 million to $296 million, while private equity rose from nearly $60 million to $223 million.
Other segments, including asset-backed credit and corporate credit, also saw significant expansion, indicating rising issuance across a broader range of instruments. However, market value alone does not guarantee liquidity, as outstanding value can increase due to more assets being issued, even if secondary market trading remains limited.