Tokenized Assets Face Liquidity Shortage as Stablecoins Struggle to Integrate into Daily Life
Key Summary
Tokenization has opened new trading opportunities, but the growing supply of real-world assets is not matched by investor demand, leading to liquidity shortages and regulatory hurdles. Panelists at the Cointelegraph CONNECT event discussed the challenges of tokenized markets, stablecoin payments, and everyday usability. Despite the growing stablecoin market capitalization, challenges persist in identifying available liquidity and managing counterparty risks.
Precedent & Market Context Tokenized assets are opening new trading opportunities across financial markets, but the growing supply of real-world assets (RWAs) being brought onchain has yet to be matched by investor demand, according to Alex Taaffe, chief revenue officer at crypto trading firm GSR. Speaking during a panel on liquidity and market fragmentation at CONNECT by Cointelegraph: Singapore Edition on Oct. 9, Taaffe said liquidity is improving in trading for pre-IPO stocks, commodities and global equities that investors previously had limited access to. However, he said demand for fully tokenized RWAs has not kept pace with the growing number of assets being issued. Panelists also discussed the challenges of stablecoin payments, including regulatory hurdles and everyday usability. Mike Silagadze, founder and CEO of ether.fi, said while stablecoins have made it easier to move money across borders, wider adoption depends on whether consumers can use them for everyday expenses. Yvonne Chia, head of communications at USDD, emphasized the importance of user experience in stablecoin adoption. "The reason no one uses stablecoins in many parts of the world is because it just doesn’t plug into your day-to-day life," Silagadze said. Beyond everyday usability, regulatory hurdles remain, with providers forced to navigate rules that differ across jurisdictions. Ilya Podoynitsyn, co-founder and CEO of FinHarbor, pointed out that providers must adapt their infrastructure and compliance systems to individual markets. Ashna Vaghela, chief customer officer at crypto payments provider Mercuryo, said that stablecoin payments should become as straightforward as using Apple Pay, with users able to complete transactions without leaving an application. "I think that’s the whole point, to be invisible," Vaghela said. The discussion came as stablecoin market capitalization stood at $306 billion, up about 2% year over year after growing roughly 74% in the preceding 12 months. Crypto trading platforms face challenges identifying available liquidity across blockchain networks and managing counterparty risks, according to panelists discussing “What’s Still Missing in the Onchain Trading Stack in 2026.” Austin Federa, co-founder of DoubleZero, said moving liquidity between blockchain networks remains more difficult than in traditional financial markets. He said that “fragmentation is not just an execution problem, it’s like a data problem,” adding that “it’s actually very hard to figure out how much liquidity truly exists onchain.” Panelists also discussed the role of blockchain data in risk management, with Miguel Morel, founder and CEO of blockchain analytics firm Arkham Intelligence, highlighting the potential for onchain data to assess counterparty risks and inform compliance decisions.