Tokenization is one of the most talked-about things in crypto today, but industry executives are pushing back against one of its biggest myths. Speaking at Paris Blockchain Week (PBW) 2026, leaders from Ondo Finance and Tether warned that simply putting assets on-chain does not automatically make them liquid. This position challenges a core premise driving the growth of tokenized real-world assets (RWAs).
The comments come at a time when tokenization is gaining institutional traction, with features across banking, real estate and private credit being brought onto blockchain rails. But as issuance grows, attention is shifting toward a more difficult question: can these assets actually trade at scale?
Tokenization Changes Format, Not Market Reality
At the heart of the discussion is a misconception about what tokenization actually does. While it can digitize ownership and improve access via alternative rails, it does not change the nature of an asset.
According to Oya Celiktemur, the sales director at Ondo Finance, tokenizing something illiquid will not magically transform it into tokenised liquidity. Assets like real estate and private credit are illiquid due to structural reasons, including long holding periods, complex valuations, and limited buyer pools. Tokenizing them may make ownership more divisible or accessible, but it does not create demand where none exists.
Francesco Ranieri Fabracci, head of tokenization expansion at Tether, echoed this view, noting that putting assets on-chain does not guarantee active secondary markets. Instead, he pointed to a narrower set of assets, such as bonds, money market funds, and stablecoins, as more likely to achieve consistent liquidity in tokenized form.
These instruments already have established demand and standardized structures, making them better suited for on-chain trading. This means that tokenization is not a shortcut to liquidity. Instead, it is a tool that works best when paired with assets that are already liquid or near-liquid in traditional markets.
Distribution, Demand, and Market Structure Are Crucial
Early discussions around tokenization focused on how to bring assets on-chain. Now, the focus is turning to distribution and market depth. Tokenized RWAs have grown rapidly, with billions of dollars now represented on blockchain networks. But much of this activity remains concentrated, with limited secondary trading and low turnover for many asset classes.
This supports the ideology that liquidity is not created by technology alone. It requires active buyers and sellers, efficient market infrastructure, regulatory clarity, and standardized products. Without these, such assets risk becoming digitally wrapped versions of the same illiquid instruments they were meant to transform.
Moreover, as traditional financial players explore tokenization, they question whether these assets can integrate into broader financial systems and attract sustained activity. The message from PBW 2026 is a reality check that while tokenization can improve access, transparency, and efficiency, it does not solve liquidity by itself. As the market matures, success will depend less on how many assets are brought on-chain and more on whether they can support real, sustained trading activity.
