The Growing Pains and Opportunities of Tokenized Assets and Stablecoins

Liquidity stands as the upcoming hurdle in the journey of tokenization.

Speaking at the Cointelegraph CONNECT Singapore conference on October 9 during a panel addressing liquidity and market fragmentation, Taaffe observed improvements in the liquidity of trading pre-IPO stocks, commodities, and global equities—assets previously difficult for investors to access. However, he pointed out that demand for fully tokenized real-world assets remains behind the surge in their issuance.

Panel participants (from left to right): Rayco Tarrida Ortega, Min Teo, Shiliang Tang, Lingling Jiang, and Alex Taaffe. Photo credit: Cointelegraph

Cointelegraph brought together Web3 founders, investors, and industry leaders for four panel discussions covering topics such as tokenization, stablecoin payments, onchain trading infrastructure, and venture capital exits, alongside a startup competition.

Taaffe emphasized, “There is a clear imbalance between supply and demand regarding RWAs and fully tokenized assets. The supply is vast, as nearly every asset manager or issuer aims to raise capital onchain.”

He further noted that the increasing number of asset issuers and blockchains contributes to additional fragmentation of liquidity in tokenized asset markets.

Lingling Jiang, partner at DWF Labs, concurred that fragmentation persists as a significant issue, especially when multiple issuers tokenize the same underlying asset and create separate liquidity pools.

Nevertheless, Jiang highlighted notable improvements in cryptocurrency liquidity over recent years, while acknowledging considerable efforts still lie ahead for the industry.

Stablecoin acceptance depends on their integration into everyday payments

During the discussion titled “Stablecoins at the Point of Sale: Cards, Wallets and the Race for Everyday Spend,” Mike Silagadze, founder and CEO of ether.fi, stated that although stablecoins simplify cross-border money transfers, widespread adoption hinges on consumers’ ability to use them for daily expenses.

Silagadze used Singapore as an example, where despite some consumers holding USDC stablecoins, they still require local currency to pay bills, illustrating a disconnect between blockchain payment infrastructures and traditional financial services.

Yvonne Chia, head of communications at USDD, remarked that considering the user perspective is crucial: “The most important aspect is the user experience.”

She added, “Our goal is to progress toward making it effortless for users to hold and spend stablecoins to such an extent that they don’t even realize they are using one; it becomes an ordinary part of life.”

Panelists (left to right): Ciaran Lyons (moderator, Cointelegraph), Ilya Podoynitsyn, Yvonne Chia, Mike Silagadze, Ashna Vaghela. Source: Cointelegraph

Silagadze further explained, “A key reason stablecoins are not utilized in many parts of the world is their lack of integration into everyday life.”

Aside from daily usability hurdles, regulatory challenges remain significant, according to Ilya Podoynitsyn, co-founder and CEO of FinHarbor. He pointed out that service providers must navigate diverse regulations across jurisdictions, compelling them to tailor their infrastructure and compliance processes to individual markets.

Ashna Vaghela, chief customer officer at crypto payments firm Mercuryo, emphasized that stablecoin payments should be as seamless as using Apple Pay, allowing users to complete transactions without leaving the app.

“I believe invisibility is the essence,” Vaghela said.

This dialogue took place against the backdrop of a stablecoin market capitalization of $306 billion, a 2% year-over-year increase following an approximate 74% growth in the previous 12 months.

Onchain trading infrastructure grapples with liquidity fragmentation and risk management issues

During a panel titled “What’s Still Missing in the Onchain Trading Stack in 2026,” participants highlighted the difficulties crypto trading platforms face in pinpointing available liquidity across blockchain networks and handling counterparty risks.

Austin Federa, co-founder of DoubleZero, mentioned that moving liquidity across blockchain networks remains more complicated than in traditional finance. He stated, “Fragmentation isn’t just an execution problem; it’s also a data problem,” and stressed the challenge of accurately determining onchain liquidity.

Panelists (left to right): Alice Liu, Franklyn Wang, Miguel Morel, Austin Federa, Eunice Giarta. Source: Cointelegraph

From a risk perspective, Miguel Morel, founder and CEO of blockchain analytics firm Arkham Intelligence, explained that trading firms can leverage onchain data to evaluate counterparty risks, especially in prediction markets where some players may hold informational advantages.

“Knowing your counterparty and taking on less risk allows you to offer tighter spreads,” Morel said, noting that this can result in better pricing for clients.

He also pointed out that blockchain data aids exchanges in assessing customer deposits, enabling them to trace fund origins and make informed compliance decisions.

“Without needing passports, you can identify where deposits come from,” Morel explained. This helps exchanges decide whether to permit trading with deposited funds or send them for compliance review.

Crypto investors encounter tougher exits as markets mature

Panelists on “The Exit Problem: How Investors Get Their Money Back” noted that liquidity constraints are complicating exits for venture capital investors in crypto.

Pulkit Gupta from Nomad Capital mentioned that crypto market liquidity has been notably weak over the last three months and is largely concentrated in major cryptocurrencies.

“Exiting positions in altcoins has been extremely challenging for us,” Gupta admitted. Nomad Capital backs several crypto projects with publicly traded tokens, including Movement, Solayer, and Berachain.

Panelists (from left to right): David Shengart (moderator, Cointelegraph), Andre Nabais, Pulkit Gupta, Aleksandr Nexhaev, Sonia Shaw. Photo credit: Cointelegraph

Sonia Shaw, CEO of OneAsset, observed that the market’s maturation demands startups demonstrate stronger business fundamentals. Reflecting on an investor expecting an exit within six months, she noted, “I don’t think the market works that way anymore.”

Shaw viewed the move away from rapid monetization as an encouraging indicator of market maturity.

Aleksandr Nechaev, partner at Funders VC, stressed that the rapid pace of change creates challenges for both products and markets.

“Founders’ expertise and their ability to manage uncertainty have become central factors in investment decisions,” Nechaev stated. This theme of adaptability and resilience among founding teams was further explored during a startup pitch competition hosted by Funders VC later that day.

Tokenized assets and stablecoins are reshaping the financial landscape but face key challenges such as liquidity fragmentation, user adoption, regulatory complexity, and evolving market dynamics. Addressing these issues is crucial for enabling widespread access, seamless transactions, and sustainable growth in blockchain-based finance.