Symbiotic, a crypto infrastructure firm backed by Paradigm, Pantera Capital and Coinbase Ventures, rolled out a new system aimed at tackling one of the biggest obstacles facing tokenized assets: liquidity.
The product, dubbed Liquid Lane, allows investors to exchange tokenized funds, private credit products and other real-world assets (RWAs) for stablecoins almost instantly instead of waiting through redemption windows that can stretch for as long as 180 days.
The product addresses a key friction point in tokenized finance. While assets may exist onchain, the underlying redemption process often remains tied to traditional financial infrastructure.
“The RWA market has crossed $33 billion, but most of those assets still can’t be redeemed on demand,” Symbiotic co-founder Misha Putiatin told CoinDesk. “Institutions understand that, which is why liquidity gets priced at a premium.”
Tokenization is shifting from simply representing assets like bonds, funds, credit on a blockchain toward building infrastructure that makes them more useful. That’s a crucial step forward in a market that’s expected to grow exponentially over the next few years. Citi projected that tokenized assets could become a $5 trillion market by 2030, while BCG and Ripple forecast a market of nearly $19 trillion by 2033.
Liquidity bottleneck
Many tokenized funds can be transferred instantly onchain, but investors still wait weeks or months for cash when redeeming with issuers, a hurdle for both investors and fund managers.
Liquid Lane introduces a market-based approach to redemptions. When an investor wants to exit a tokenized position, the request is routed through a request-for-quote (RFQ) system to a network of verified market makers. Participants compete to provide liquidity, and the winning bidder delivers USDC stablecoins immediately while receiving the tokenized asset.
The issuer completes settlement in the background. Unlike dedicated liquidity pools, Liquid Lane uses shared collateral that can support multiple issuers while earning redemption spreads, lending income from protocols such as Aave and Morpho and returns from other Symbiotic-powered applications.
Fasanara Capital, the manager behind tokenized credit fund mGLOBAL, will serve as the first vault curator alongside Avantgarde Finance, Barter and KPK. Midas is the first integrated issuer, while RedStone Settle will connect the system to lending market liquidations.
Collateral markets
Liquid Lane also reflects a broader trend across tokenized finance.
Firms are increasingly building shared liquidity and collateral infrastructure rather than isolated pools around individual products. Last month, Grove launched Basin, a $1 billion liquidity network backed by partners including BlackRock and Janus Henderson that advances stablecoin liquidity against tokenized fund redemptions.
Symbiotic emerged in crypto’s restaking sector before realizing its vault architecture could support a wider range of financial applications.
“What do we do best as a blockchain industry? We democratize access,” Putiatin said in an interview. “We give access to something that was not available before, and we streamline it so it’s more efficient.”
Today, Symbiotic describes itself as a collateral-markets platform spanning credit, insurance, stablecoins and tokenized assets. The firm says its infrastructure secures more than $550 million across dozens of applications.