Industry speakers at Paris Blockchain Week said tokenization can broaden access and issuance, but it does not by itself create active secondary markets for illiquid assets.
Tokenization does not automatically make hard-to-trade assets liquid, industry executives said at Paris Blockchain Week, pushing back on the idea that putting private credit, real estate or other illiquid products onchain will by itself create active secondary markets.
Speaking during a panel moderated by Cointelegraph CEO Yana Prikhodchenko, Oya Celiktemur, Ondo Finance sales director for Europe, the Middle East and Africa (EMEA), said there is still a misconception that tokenizing illiquid assets can make them easier to trade.
“I think there’s still this idea that tokenizing something illiquid will somehow magically make it a liquid asset, which is just not true,” said Celiktemur. She added that assets like real estate and private credit “were never that liquid” to begin with.
