Securitize CEO: Insufficient liquidity in digital assets; the most successful tokenized asset is the US dollar

ChainCatcher news, according to Decrypt, Securitize co-founder and CEO Carlos Domingo stated that accessibility is not the only factor driving the wave of tokenized assets. It was once believed that tokenization could make illiquid assets more liquid, but this is not actually the case. Whether it’s equity in an apartment building or tokenized Pokémon cards, digital assets will inherit the lack of liquidity inherent in their physical counterparts. This means that, without incurring significant losses, these assets may be difficult to sell immediately.

Domingo also said that as tokenization technology develops, this dynamic may eventually change, but for now, the main focus is on assets that can enhance existing liquidity, namely cash and U.S. Treasury bonds. We have already moved in the opposite direction of illiquid markets; arguably, the most successful tokenized asset is actually the U.S. dollar, as evidenced by the growth of stablecoins.