Wall Street tokenized products face challenges of securing investors and forming a resale market.

Wall Street firms are tokenizing assets on blockchain platforms, but the model’s commercial viability now hinges on finding buyers and building secondary markets rather than merely issuing tokens. At TOKEN2049, executives from R3, T-RIZE and the XDC Network told BeInCrypto that tokenized funds and other traditional products need actual distribution networks and customer demand, since issuance alone does not guarantee inflows or the ability to sell. R3 co-founder Todd McDonald warned that assets locked inside private networks with no reachable customers or trading activity effectively have no participants at all. The challenge matters because banks and asset managers are betting blockchain rails can widen their investor base, yet without liquidity and resale venues tokenized products risk stalling after launch. What to watch next is whether issuers secure distribution partnerships and functioning secondary trading for tokenized funds.