Tokenized assets are rapidly opening up exciting new trading opportunities across global financial markets, but the rising supply of real-world assets (RWAs) being successfully brought onchain has yet to be matched by commensurate investor demand, according to industry experts. This notable market dynamic was highlighted by Alex Taaffe, the chief revenue officer at prominent crypto trading firm GSR, during a comprehensive panel discussion on liquidity and market fragmentation at the CONNECT by Cointelegraph: Singapore Edition event on Oct. 9.
Speaking before an audience of Web3 founders, investors, and industry executives, Taaffe pointed out that while liquidity is visibly improving in trading categories such as pre-IPO stocks, commodities, and global equities—segments that historically offered investors limited access—overall demand for fully tokenized RWAs simply has not kept pace with the accelerating volume of asset issuance. The event itself brought together key stakeholders for four focused panel discussions covering critical themes like tokenization, stablecoin payments, onchain trading infrastructure, and venture capital exits, alongside a high-stakes startup pitch competition.
"Specifically on RWAs, and fully tokenized assets, there’s a supply and demand imbalance. There’s a ton of supply. Every asset manager issuer wants to do capital formation onchain," Taaffe explained. He further elaborated that the proliferation of numerous asset issuers and diverse blockchains has compounded the issue by further fragmenting liquidity across various tokenized markets.
Lingling Jiang, a partner at DWF Labs, echoed these sentiments during the session, agreeing that market fragmentation remains a persistent challenge for the industry. This structural friction is particularly evident when different independent issuers choose to tokenize the exact same underlying asset, inadvertently creating isolated, separate liquidity pools rather than a unified, deep market. Nevertheless, Jiang acknowledged that cryptocurrency liquidity has improved significantly over recent years, even as she conceded that the broader industry still has substantial work to do to streamline operations.
The ongoing evolution of onchain finance was also underscored by related market developments, such as a notable stock price surge exceeding 10% for Securitize following its strategic launch of tokenized United States equities on the Solana blockchain network.
Stablecoin Adoption Hinges on Everyday Payments
The journey toward mainstream financial integration was a central theme during the panel titled “Stablecoins at the Point of Sale: Cards, Wallets and the Race for Everyday Spend.” Industry leaders debated the practical hurdles preventing digital dollars from becoming a universal medium of exchange. Mike Silagadze, the founder and CEO of ether.fi, noted that while stablecoins have undeniably revolutionized the efficiency of moving money across international borders, their widespread, everyday adoption ultimately depends on whether ordinary consumers can effortlessly use them for mundane, daily expenses.
Silagadze drew attention to developed financial hubs like Singapore, where a consumer might hold digital assets such as USDC but still find themselves forced to rely on traditional local currency to pay everyday utility bills. This stark reality illustrates the ongoing gap that exists between advanced blockchain payment infrastructure and the practical needs of everyday financial services. Yvonne Chia, head of communications at USDD, emphasized that when stablecoin issuers genuinely consider the perspective of the end user, the priority must shift entirely to user experience.
"That’s the kind of direction that we want to move in, to make it as easy as possible for the user to have stablecoins, use stablecoins, to the point where it doesn’t cross their mind that they are using a stablecoin. It’s just a regular part of their lives," Chia stated.
Reinforcing this perspective, Silagadze added that the fundamental reason digital assets remain largely unused for day-to-day purchases in many parts of the world is simply because the technology does not yet plug seamlessly into routine human habits. Beyond practical usability, regulatory hurdles continue to complicate the landscape, according to Ilya Podoynitsyn, the co-founder and CEO of FinHarbor. Podoynitsyn pointed out that service providers are continually forced to navigate complex regulations that vary significantly across different international jurisdictions, compelling them to continuously adapt their technological infrastructure and compliance systems to satisfy local market demands.
Ashna Vaghela, chief customer officer at crypto payments provider Mercuryo, suggested that the ultimate benchmark for stablecoin payments is for them to become as straightforward and frictionless as using Apple Pay, allowing users to complete transactions instantly without ever needing to leave an application. "I think that’s the whole point, to be invisible," Vaghela remarked.
These discussions unfolded against the backdrop of a massive global market, with total stablecoin market capitalization hovering around $306 billion. This figure represents a modest 2% increase year-over-year, following an explosive growth spurt of roughly 74% during the preceding 12-month cycle.
Onchain Trading Faces Liquidity Fragmentation and Risk Management Challenges
As the infrastructure supporting decentralized finance continues to evolve, crypto trading platforms are grappling with sophisticated challenges related to identifying available liquidity scattered across disparate blockchain networks and actively managing counterparty risks. These pressing operational concerns were thoroughly explored during a panel titled “What’s Still Missing in the Onchain Trading Stack in 2026.”
Austin Federa, co-founder of DoubleZero, explained that moving liquidity smoothly between separate blockchain environments remains considerably more difficult than in traditional, legacy financial markets. He characterized the current state of the market by noting that "fragmentation is not just an execution problem, it’s like a data problem," while adding that "it’s actually very hard to figure out how much liquidity truly exists onchain."
Addressing the critical pillar of risk management, Miguel Morel, the founder and CEO of blockchain analytics firm Arkham Intelligence, highlighted how modern trading firms can leverage transparent onchain data to accurately assess counterparty risks. This capability is especially crucial in specialized sectors like prediction markets, where certain active participants may possess a distinct informational advantage over others.
"If you know who’s on the other side and you’re taking less risk, you can offer a tighter spread," Morel explained, noting that this data-driven transparency ultimately results in better, more competitive pricing for everyday customers. Furthermore, Morel pointed out that this exact same blockchain data can empower exchanges to evaluate customer deposits more efficiently, allowing them to trace the origin of incoming funds and make informed, automated compliance decisions.
"Without needing to ask for a passport, you can know where those deposits are coming in from," Morel said, adding that exchanges can readily utilize this intelligence to determine whether to immediately permit trading activity using those deposited funds or route them for a more rigorous compliance review.
Crypto Investors Face Tougher Exits as Markets Mature
The broader maturation of the digital asset ecosystem has inevitably introduced new complexities for early-stage backers, with liquidity bottlenecks significantly complicating exit strategies for crypto venture capital investors. This shifting reality was the focal point of the panel discussion titled “The Exit Problem: How Investors Get Their Money Back.”
Pulkit Gupta of Nomad Capital candidly shared that liquidity conditions within cryptocurrency markets have been notably sluggish over the preceding three-month period, with the vast majority of active trading volume heavily concentrated within only the largest and most established digital assets. "For me, on the altcoins, it has been really tough for us to get an exit," Gupta admitted, noting that his firm has previously backed several high-profile crypto projects featuring publicly traded tokens, including Movement, Solayer, and Berachain.
Echoing this necessary transition toward more realistic, long-term operational expectations, Sonia Shaw, the CEO of OneAsset, observed that the market has grown up significantly, forcing emerging startups to demonstrate much stronger underlying business fundamentals than in previous market cycles. Recalling an era when institutional investors routinely anticipated realizing a full exit within a mere six months, Shaw asserted that "I don’t think the market’s like that anymore," characterizing this healthy departure from rapid, speculative exits as a positive indicator of true industry maturity.
Aleksandr Nechaev, a partner at Funders VC, further emphasized the unique challenges presented by the relentless speed of technological and market evolution for both innovative products and volatile financial environments. "The rapid pace of change makes founders’ expertise and ability central to investment decisions," Nechaev noted, highlighting that a founding team’s resilience and capacity to navigate profound uncertainty remain paramount considerations, a sentiment that resonated throughout the day’s events, including the startup pitch competition powered by Funders VC.
Crypto Startups & Venture Capital
Crypto Startups & Venture Capital
Crypto Startups & Venture Capital
