Why Tokenized Assets Can't Flourish Without Liquidity: Securitize CEO

Core Insights - Tokenization technology has not significantly improved the liquidity of illiquid assets, as they retain the illiquidity of their physical counterparts [1][2] - The current focus is on enhancing liquidity for existing liquid assets, such as cash and U.S. Treasuries, rather than illiquid markets [3] - Stablecoins, valued at approximately $300 billion, represent a successful application of tokenization, while tokenized U.S. Treasuries are valued at around $9 billion, significantly outpacing tokenized stocks at $681 million [4] Industry Developments - Securitize is actively involved in bringing tokenization to Wall Street, having helped launch BlackRock's USD Institutional Digital Liquidity Fund, which has reached a valuation of $2 billion since its inception [4] - BlackRock executives have emphasized the potential of tokenization to expand the range of investable assets, particularly in emerging markets, suggesting that smaller, more accessible units could democratize access to asset classes like real estate [5]