Liquidity Silos Are Taxing Tokenized Assets
The promise of tokenized real-world assets (RWA) is instant, borderless settlement. The reality is a $1.3 billion annual tax paid in friction. A new report from analytics firm RWA.io reveals that liquidity fragmentation across non-interoperable blockchains is forcing investors to eat massive inefficiencies, a structural flaw that could cost the sector $75 billion by 2030.
Data compiled with input from 17 industry heavyweights, including Coinbase, Franklin Templeton, and Polygon, shows the “multi-chain” ecosystem is functioning less like a global market and more like a series of disconnected islands.
The Arbitrage Tax
The report identifies a persistent 1-3% price discrepancy for identical assets trading on different chains. In efficient markets, arbitrageurs close these gaps instantly. In crypto’s current RWA infrastructure, technical hurdles and bridge risks make arbitrage unviable.
Moving capital to capture these spreads is prohibitively expensive. Investors face transfer costs between 2-5% due to slippage, bridge fees, and gas. The result? Capital stays trapped, and the “unified ledger” thesis breaks down.
The fragmentation of liquidity is the single biggest obstacle preventing the RWA market from reaching its multi-trillion-dollar potential.
Ethereum vs. Polygon: A Divided Map
Market dominance is split, further entrenching these silos. Ethereum retains 52% of all tokenized RWA value, benefiting from its deep liquidity moat. However, Polygon has cornered the institutional debt niche, capturing 62% of the tokenized bond market.
This division forces issuers to pick a side or fragment their own liquidity. ETH traded up 3.8% to $2,947 today, reflecting its continued hegemony, while POL (formerly MATIC) struggled, dipping 4% to $0.11 despite its bond market leadership.
The $75 Billion Warning
The stakes are scaling. If the RWA sector expands to the projected $16-30 trillion by 2030, these inefficiency losses will compound. The report estimates the annual drag could balloon to between $30 billion and $75 billion. For institutions like Franklin Templeton, which treat every basis point as sacred, this friction is not just a nuisance, it is a barrier to entry.
