Tokenization has a liquidity problem - the assets that would benefit most from being onchain, such as private credit, are the ones with the least secondary liquidity.

Four approaches are emerging to solve it:

1️⃣ Stablecoin collateral wrappers: issuers such as Maple Finance. enable tokenized assets as collateral, allowing users to tap into yield while achieving deeper liquidity.

2️⃣ Better oracles: Chainlink Labs, Pyth Network, and RedStone are serving 24/7 tokenized markets with real-time pricing.
Real-time pricing alongside asset risk scoring would significantly boost trust and asset composability.

3️⃣ New redemption mechanisms: Symbiotic Liquid Lane uses RFQ-based vaults to compete on redemption discounts, providing faster execution while reducing spreads on the assets.

4️⃣ Vertical integration: Figure controls stages from origination to price discovery to settlement in-house.

Read more from DWF Ventures's deep dive into tokenization here.