Core Insights - The tokenisation of real-world assets (RWAs) has seen over $34 billion in assets move on-chain, indicating a shift towards a programmable and borderless financial future [1] - However, the reality of the RWA market reveals significant challenges, including low trading volumes and limited investor participation, which hinder the effectiveness of tokenised assets [2][4] Group 1: Liquidity Issues - Most tokenised assets, including US Treasuries and private credit, exhibit low trading volumes and long holding periods, leading to a market that appears liquid but functions as a closed loop [3][4] - The lack of liquidity results in wider spreads and discourages market-makers from participating, further complicating the exit strategies for investors [4] Group 2: Regulatory Challenges - The regulatory landscape for tokenisation is inconsistent across jurisdictions, with different definitions and requirements for digital securities, which complicates compliance and legal frameworks [5] - Each tokenisation project requires tailored legal work due to varying regulations, highlighting the geographical impact on the feasibility of tokenisation [5] Group 3: Infrastructure Limitations - The current infrastructure for custody, settlement, and valuation of tokenised assets is fragmented, with many pilots operating outside traditional banking systems [6] - The absence of trusted oracles and interoperable standards prevents tokenisation from achieving its potential for instant settlement and collateral efficiency, limiting institutional adoption [6]