A Dune Analytics report shows tokenized real-world assets reached $34.5 billion at end of August 2026, with tokenized Treasury funds comprising roughly half at approximately $17 billion. Despite this scale, monthly spot turnover for tokenized Treasury funds was just 0.006% of supply, meaning the secondary market is almost entirely illiquid. Tokenized equities, representing only 8% of the market, generated 93% of all spot volume.
For Armada's crypto repo desk, this is a direct collateral liquidity risk. Tokenized T-Bills are positioned as high-quality, near-cash collateral, but the data suggests that in a stress scenario requiring rapid liquidation, secondary market depth is effectively nonexistent. Haircuts should be recalibrated to reflect illiquidity risk, and Fireblocks redemption mechanics via the primary issuer should be confirmed as the actual exit path.