CONNECT recap: Liquidity is tokenization’s next challenge, everyday stablecoins

At the Cointelegraph CONNECT event in Singapore, industry experts highlighted a significant supply-demand imbalance in the real-world asset (RWA) tokenization market. Alex Taaffe of GSR noted that while asset managers are aggressively pursuing onchain capital formation, investor demand has failed to keep pace with the growing supply of tokenized assets. Panelists identified market fragmentation across multiple blockchains and disparate issuer pools as primary obstacles to achieving efficient liquidity. Beyond RWA supply issues, the event addressed the necessity of integrating stablecoins into everyday consumer payments to drive broader adoption. Regulatory complexity across jurisdictions remains a persistent hurdle for infrastructure providers attempting to bridge the gap between blockchain and traditional finance. Furthermore, venture capital participants discussed the challenges of exiting positions in the current market, emphasizing a shift toward longer-term business fundamentals. These insights underscore that while the technological infrastructure for tokenization is expanding, the industry must solve for liquidity, usability, and regulatory harmonization to reach maturity.