Tokenized real world assets hit $29.9B, liquidity questions linger

Tokenized real world assets are surging—yet traders are being warned that “tokenization” does not automatically create liquidity. At Paris Blockchain Week, panelists argued that moving inherently illiquid assets (like real estate or private credit) onto a blockchain does not change their underlying tradability. Ondo Finance’s Oya Çeliktemur said the misconception is that wider access guarantees deeper liquidity. Tether’s Francesco Ranieri Fabracci added that not every on-chain asset becomes immediately tradable, and that standardized instruments are more likely to sustain liquidity. Data cited from RWA.xyz shows market capitalization growing from about $8.8B (April 16, 2025) to nearly $29.9B (April 16, 2026)—more than a threefold increase. Growth is concentrated in more standardized, easier-to-understand assets such as tokenized U.S. Treasuries and commodities. Meanwhile, less-liquid segments still struggle to become active markets. Examples of slower liquidity in tokenized real world assets include tokenized real estate rising from roughly $35M to $296M, and private equity increasing from about $60M to $223M over the same period. Experts stressed that higher total market value does not equal higher liquidity. Unless tokenized products trade robustly on secondary markets, liquidity remains constrained. The sector’s next focus, according to the discussion, should shift from launching new tokenized products to ensuring they are genuinely tradable and can attract a broad investor base. Note: This is not investment advice.