Tokenized but Illiquid? Evidence from Real-World Asset Markets

Real-world asset tokenization is often presented as a mechanism for improving the liquidity of traditionally illiquid assets. However, on-chain representation and secondary market liquidity are distinct outcomes. This paper examines observed liquidity within tokenized real-world asset markets and identifies the token characteristics associated with higher market activity. Using token-level data from RWA.xyz and supplemental contract-level observations from Etherscan, this study constructs an Ethereum-based monthly panel of non-stablecoin real-world assets across three prominent categories: U.S. Treasury-backed tokens, gold-backed commodity tokens, and private-credit-related tokens. Liquidity is measured using turnover, active addresses, and an active month indicator. The empirical design combines descriptive statistics, non-parametric group tests, and exploratory panel regressions suited to short and sparse token histories. The results provide preliminary evidence of substantial heterogeneity across asset categories. Gold-backed tokens exhibit broader holder bases and more persistent on-chain activity than many Treasury and private-credit-related products, while outstanding asset value alone does not reliably predict observed liquidity. This paper contributes to the literature by developing a clearer empirical measurement framework for observed liquidity in tokenized real-world asset markets and by providing exploratory evidence that market participation and asset category should be analyzed separately from token issuance alone.