Jack Paul 
Hayden Adams, the founder of Uniswap, argues that tokenization is starting to reshape how liquidity works. In a post on X, he said the shift goes beyond infrastructure. Real-world asset tokenization is dismantling the old market-making model, and automated market makers could become more central to financial markets.
Tokenization is moving into regulated markets
Adams pointed to recent regulatory steps. The U.S. Securities and Exchange Commission has approved token stock trading on Nasdaq and the New York Stock Exchange. The Depository Trust & Clearing Corporation has also run live trading tests. That suggests tokenized securities are moving from experiments to something closer to normal practice.
One concrete example he cited is a Uniswap pool on the Robinhood Chain. That pool holds 10 stock tokens plus SPY, the S&P 500 ETF. It recorded $33 million in trading volume in 12 days. That number is still small compared with traditional exchanges, but it shows demand for tokenized assets can appear outside conventional venues.
Why AMMs could become important
AMMs are trading protocols that use algorithms to price assets. Liquidity comes from pools funded by users, not from a central market maker matching buy and sell orders. That difference matters. Traditional market-making is mostly concentrated among large firms. With an AMM, anyone can supply liquidity.
That setup lowers barriers for assets like tokenized stocks, bonds, and funds. It also allows trading around the clock. There are still limitations. Capital efficiency can be poor, and slippage can be high in thinner pools. Adams described AMMs as early-stage technology, so those problems may get better over time.
What could change for traders and institutions
If tokenized securities gain wider adoption, AMMs might become a primary place to trade them. Everyday traders could see lower spreads and easier access to tokenized products. Institutions could benefit from faster settlement and lower operational overhead.
But there are risks. Smart contract bugs are a real concern. Regulatory uncertainty is still there, even with recent approvals. Price oracles need to stay reliable, and that is not easy to guarantee. I think the direction is clear, though not guaranteed. More projects, including Ondo Finance and BlackRock’s BUIDL fund, are already issuing tokenized funds. Large exchanges and clearinghouses are exploring similar moves. That trend probably continues, and AMMs appear well positioned to play a bigger role.