This article examines the structural issues causing illiquidity in tokenized assets, highlighting how shallow markets lead to high trading costs and instability. It argues that current market frameworks fail to provide the necessary liquidity and proposes the need for a new market structure to enable effective trading of these assets.

European tokenization firms are pressing EU lawmakers to amend the DLT Pilot Regime, citing asset limits and licensing issues that hinder growth. They warn that without swift changes, Europe risks falling behind the US in tokenization and settlement capabilities.