Symbiotic has launched a new network called Liquid Lane, aiming to shorten the exit time for tokenized assets. This system targets real-world assets such as tokenized funds and private lending, allowing investors to quickly exchange their tokens for stablecoins after submitting a redemption request, without having to wait for the traditional redemption window.
The redemption period is still relatively long.
While many tokenized assets have been circulated on the blockchain, the process for actual cash redemption remains constrained by the traditional financial system. Symbiotic co-founder Misha Putiatin stated that such redemptions often take weeks or even months, posing a significant obstacle for institutions entering the tokenized fund market.
Symbiotic states that the current RWA market size exceeds $33 billion, but most assets still cannot be redeemed on demand. For institutional investors, the ability to quickly exit assets directly impacts capital efficiency and also drives up liquidity costs.
Asking for prices from market makers via RFQ
Liquid Lane uses a book-matching model to process redemption requests. When an investor wishes to exit a tokenized position, the system sends the request to a verified network of market makers. Participants bid to provide liquidity, and the successful bidder first delivers USDC and then receives the corresponding tokenized assets.
This means that the process, which previously required waiting for the issuer's redemption window, has been transformed into an exit mechanism based on market liquidity. For fund managers and investors, the focus is no longer just on whether assets can be transferred, but on whether settlement can be completed more quickly.
The first batch of access providers announced
Symbiotic stated that Fasanara Capital's tokenized credit fund mGLOBAL will be the first vault curator, with Avantgarde Finance, Barter, and KPK also participating. Midas is the first issuer to integrate, while RedStone Settle will connect the system to lending market clearing scenarios.
Symbiotic initially focused on the restaking space. The company now positions itself as a collateral market platform, with operations spanning credit, insurance, stablecoins, and tokenized assets. The company states that its infrastructure currently powers dozens of applications, securing over $550 million in assets.
Additional information:Citigroup previously predicted that the tokenized asset market could reach $5 trillion by 2030; BCG and Ripple's forecasts are closer to $19 trillion.
