At the CONNECT by Cointelegraph: Singapore Edition on Oct. 9, industry leaders discussed the growing disconnect between the supply of tokenized real-world assets (RWAs) and investor demand. Alex Taaffe, chief revenue officer at GSR, noted that while liquidity is improving for pre-IPO stocks and commodities, fully tokenized RWAs face a significant imbalance with excessive supply and insufficient demand. Lingling Jiang of DWF Labs highlighted that fragmentation remains a critical challenge, as different issuers create separate liquidity pools for identical underlying assets.
The event also addressed barriers to stablecoin adoption in everyday payments. Mike Silagadze, CEO of ether.fi, argued that wider usage depends on seamless integration into daily life, pointing out that consumers in Singapore may hold USDC but still require local currency for bills. Yvonne Chia of USDD emphasized that user experience must be invisible, making stablecoins feel like regular payment methods rather than distinct crypto instruments. Ashna Vaghela from Mercuryo compared this goal to the simplicity of Apple Pay. These discussions occurred against a backdrop of a $306 billion stablecoin market capitalization, which grew roughly 74% in the preceding year before rising about 2% year over year.
Panelists further explored technical gaps in onchain trading infrastructure. Austin Federa of DoubleZero described liquidity fragmentation as both an execution and data problem, noting the difficulty in assessing true onchain liquidity. Miguel Morel of Arkham Intelligence suggested that blockchain analytics can help trading firms manage counterparty risk and improve pricing by identifying who is on the other side of a trade. Additionally, venture capital exits were identified as increasingly difficult due to weak liquidity in altcoin markets, with Pulkit Gupta of Nomad Capital reporting challenges in exiting positions despite backing projects like Movement and Solayer.
The persistent supply-demand imbalance in tokenized RWAs suggests that institutional enthusiasm for onchain asset issuance has outpaced the development of robust secondary markets. While the technology enables easier capital formation, the lack of aggregated liquidity across fragmented chains creates friction that discourages retail and institutional buyers. This structural gap indicates that current tokenization efforts may be solving for issuer convenience rather than investor utility, potentially leading to stagnant asset values if demand does not catch up with the rapid expansion of supply.
Simultaneously, the focus on 'invisible' stablecoin usage highlights a strategic pivot from speculative trading to practical financial infrastructure. The data implies that regulatory compliance and cross-border payment rails are no longer sufficient differentiators; instead, success hinges on integrating crypto-native assets into traditional consumer workflows without requiring users to understand the underlying blockchain mechanics. For venture capital, the shift toward longer exit horizons and stricter fundamental requirements signals a maturation phase where speculative liquidity premiums are evaporating, forcing startups to prove sustainable business models rather than relying on token price appreciation for returns.
