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Tokenized Assets Face Liquidity Risks, Plume CEO Warns

Chris Yin says distribution remains a challenge for real-world assets, while high yields can carry credit, custody and redemption risks.

Plume co-founder and CEO Chris Yin says tokenization does not automatically improve liquidity, even as stablecoins have validated the real-world asset model. In a Wu Blockchain podcast, he identified asset distribution and sustainable liquidity as the next challenges for the sector.

Yin cautioned that high-yield products can expose investors to underlying credit and custody risks, as well as asset maturities and redemption restrictions. Those features matter when assessing both the source of yield and the ability to exit an investment.

Over the next two to three years, Yin expects more traditional institutions to enter the market, advancing native onchain issuance, derivatives, yield splitting and new types of investment portfolios.

Source: [Plume CEO Chris Yin on RWA Yields, Liquidity Risks, and the Future of Onchain Finance](https://www.wublockchain.xyz/articles/plume-ceo-chris-yin-rwa-yields-liquidity-risks-onchain-finance-1999)

Frequently asked questions

  1. Why does Chris Yin say tokenization alone is not enough?

    Yin says tokenization does not automatically improve liquidity. He identifies distribution to users and sustainable liquidity as challenges for real-world assets.

  2. What risks does Yin associate with high-yield products?

    He points to underlying credit and custody risks, asset maturities and redemption restrictions.

  3. What role have stablecoins played in the RWA market?

    Yin argues that stablecoins have validated the real-world asset model.

  4. When does Yin expect more institutions to enter the RWA market?

    He expects more traditional institutions to enter over the next two to three years.

  5. Which onchain developments does Yin expect institutions to advance?

    He expects institutional participation to advance native onchain issuance, derivatives, yield splitting and new types of investment portfolios.

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