Blockchain Fragmentation Causes Significant Losses in RWA Market
Recent reports indicate that fragmentation across multiple blockchain networks has led to notable losses in the Real-World Asset (RWA) tokenization market. Companies issuing tokenized assets, including institutional investors and digital asset platforms, face liquidity and settlement challenges due to incompatible protocols and cross-chain inefficiencies.
From a market and money supply perspective, fragmentation limits the efficient flow of tokenized assets, reduces circulating liquidity, and can depress valuations. This scenario emphasizes the need for standardized protocols and interoperability solutions to stabilize RWA markets and protect investor capital.
