The End of Illiquidity: Secondary Markets for Real Estate Assets
Understand the financial engineering needed to list RWA tokens and create instant liquidity for institutional investors.
The main promise of tokenization has always been liquidity. However, transforming an illiquid asset into a token does not magically create demand. Without willing buyers, a tokenized building remains as illiquid as the original bricks.
Value unlocking in RWA projects happens through the structuring of the secondary market. For an investor to have the flexibility to enter and exit a position rapidly, sophisticated financial engineering is required to support price discovery.
The Web3 solution involves Liquidity Pools (AMMs). Creating these pools requires strategy: incentives must be defined for liquidity providers. Calibrating these fees and rewards is the core of effective Tokenomics.
Liquidity is the Holy Grail. When a wealth manager structures a premium asset that offers both solid yield and instant exit capabilities, they lower their cost of capital and create an insurmountable competitive advantage in capital markets.
Ricardo Zago
Ricardo Zago is the founder of Avalon Blockchain Consulting. He is a Professor of Web3 and Blockchain at FIAP and a startup mentor at ACE Ventures and Rock New Ventures. He brings over 25 years of technology experience with Whirlpool, Accenture, and BASF, and 8 years dedicated to blockchain.