Uniform Labs, a blockchain infrastructure company founded by veterans of Standard Chartered, has launched a new protocol designed to address persistent liquidity constraints in the emerging tokenization market.
Announced on Wednesday, Uniform Labs unveiled Multiliquid, a protocol designed to enable 24/7 conversions between tokenized money market funds and major stablecoins, including USDC (USDC) and USDt (USDT).
At launch, Multiliquid supports integrations with tokenized Treasury assets issued by Wellington Management and other asset managers, allowing institutional holders to access on-demand liquidity rather than relying on issuer-controlled redemption windows.
The launch comes as tokenized real-world assets (RWAs) continue to expand, with the market currently valued at around $20 billion, according to industry data. While that figure is below a peak of over $30 billion earlier this year, growth has remained steady, particularly in tokenized Treasury products.
Uniform Labs said the protocol was developed in response to the GENIUS Act, recent US stablecoin legislation that establishes a regulatory framework for payment stablecoins but prohibits issuers from paying yield directly to holders.
In that regulatory environment, the company said, Multiliquid is designed to keep stablecoins as pure payment instruments while enabling yield to be generated through regulated tokenized money market funds and other RWAs connected via its swap layer.
Related: US banks could soon issue stablecoins under FDIC plan to implement GENIUS Act
Liquidity risks shadow the rapid growth of tokenized money market funds
Tokenized money market funds have emerged as one of the fastest-growing segments of the RWA landscape, alongside private credit and tokenized US Treasury bonds. However, their rapid growth has also exposed a persistent weakness: Liquidity often remains constrained by traditional redemption processes, limiting their usefulness in round-the-clock onchain markets.
That concern was recently highlighted by the Bank for International Settlements (BIS), which acknowledged the expansion of tokenized money market funds — from $770 million to nearly $9 billion in assets in about two years — but warned that the sector faces material liquidity risks.
As these funds increasingly serve as a source of collateral in crypto markets, the BIS noted that they could introduce operational and liquidity risks if onchain demand for redemptions outpaces the availability of offchain liquidity, particularly during periods of market stress.
Their use as collateral could expand as more financial institutions begin to view tokenized funds as a form of “cash as an asset,” potentially offsetting growth in stablecoins, according to JPMorgan strategist Teresa Ho.
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