Jack Paul 
Hayden Adams, the creator of Uniswap, argues that tokenizing real-world assets is changing how liquidity works in financial markets. In a recent post on X, he said automated market makers could become central to trading if this trend continues.
Tokenization is not just about putting existing securities on a blockchain. It also changes who can provide liquidity and how prices are formed. Adams points to several signs that this shift is already underway. The U.S. Securities and Exchange Commission has approved stock token trading on Nasdaq and the New York Stock Exchange. The Depository Trust & Clearing Corporation has also run live trading tests. These are early steps, but they carry regulatory weight.
Real demand outside traditional venues
One example Adams mentioned is a Uniswap pool on the Robinhood Chain. The pool holds 10 stock tokens plus SPY, the S&P 500 ETF. In 12 days, it recorded $33 million in trading volume. That is not a huge number compared with Nasdaq, but it shows demand forming outside conventional market structure. It also suggests that users are willing to trade tokenized stocks without a traditional broker as the middleman.
Traditional market making usually depends on order books and large firms that quote prices. AMMs work differently. They use algorithms to price assets, and liquidity comes from users who deposit funds into pools. That removes some barriers. Many types of assets, including tokenized bonds and funds, can be listed more easily.
Why AMMs might matter more later
Adams described AMMs as still early-stage technology. Current drawbacks include capital efficiency and slippage. But these are not permanent problems, perhaps. As the tech matures, those issues may become less severe.
The larger point is access. Market-making today is concentrated among a few big players. AMMs allow almost anyone to contribute liquidity. If tokenized securities keep gaining ground, AMMs could become a primary place to trade them. That could mean tighter spreads and trading around the clock for retail users. For institutions, it might shorten settlement times and cut operational costs.
Risks still exist. Smart contract bugs are a real concern. The regulatory path is not fully clear. And price oracles need to stay reliable, especially for assets that trade off-chain as well. None of this is guaranteed to work out, but the direction seems clear.
Traditional finance is moving closer
Exchange operators are not waiting on the sidelines. Nasdaq, NYSE, and DTCC have already started testing tokenized securities. Meanwhile, Ondo Finance and BlackRock’s BUIDL fund are issuing tokenized versions of funds. The gap between traditional finance and decentralized protocols is narrowing.
Adams’ comments fit a broader pattern. Tokenization no longer looks like an experiment. With regulatory approvals and live tests behind it, the basic rails for a more open system are being laid. Whether AMMs become the default trading venue depends on how well they scale and how regulators respond. Still, the idea of AMMs as core market infrastructure is no longer far-fetched.