Sebián Serrano, founder and CEO of Ripio, has argued that tokenization is most effective when applied to assets that already have significant demand and standardized legal and financial frameworks. The most successful tokenization effort involved the most liquid asset in the world (the US dollar) in the form of USD-backed stablecoins. Companies are now piloting tokenized versions of other highly liquid assets like Treasury bills, smaller currencies, and stocks. Tokenization allows assets and cash to move together in real time without relying on intermediaries, reducing costs and risk. It also improves capital efficiency for liquid assets. However, tokenization does not create continuous markets for ill assets and does not significantly increase capital efficiency. The future of tokenization will be defined by defined liquid assets, rather than central sector experiments, making it more straightforward for central sector adoption.