Illiquid assets are holdings that cannot be readily converted into cash without a significant loss in value or substantial delay. These assets lack an active market for immediate sale, making it challenging to find willing buyers quickly at a fair price. Examples include real estate, private equity stakes, or certain niche digital collectibles. Their valuation can be subjective, and transactions often require specialized processes or extended timeframes.
Context
The presence of illiquid assets within digital asset portfolios or decentralized finance protocols often generates news concerning risk management and market stability. Debates frequently address the challenges of pricing and collateralizing such assets in a rapidly moving digital economy. Understanding illiquidity is vital for assessing the true risk and potential for sudden value adjustments in various digital asset investments.
Tokenizing private fund ownership on a proprietary ledger enables near-instant tri-party settlement, drastically improving capital efficiency in illiquid alternative assets.
Strategic RWA tokenization of $5.7M in private equity assets immediately unlocks fractional ownership and accelerates capital formation velocity for the enterprise.
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