Tokenized Securities Face Higher Costs and Split Liquidity, Warn Infrastructure Firms

Financial market infrastructure firms are issuing a critical warning about the future of tokenized securities. Their new report highlights that without robust interoperability solutions, the tokenized asset ecosystem risks fragmenting into isolated pools of liquidity. This fragmentation, they argue, will inevitably lead to higher transaction costs for all participants, undermining one of the key potential benefits of blockchain technology. The lack of common standards and seamless connections between different platforms and blockchains is identified as the primary barrier. This caution comes as institutional interest in tokenizing traditional assets like bonds and funds continues to grow, emphasizing the urgent need for collaborative industry-wide solutions to prevent market inefficiency and foster healthy growth in the digital asset space.