Uniswap founder Hayden Adams said the route for automated market makers, or AMMs, to become a core trading engine for global financial markets is becoming easier to see as real-world asset tokenization accelerates. In his view, blockchains can break apart the vertically integrated functions long handled by traditional market makers, including capital, execution and settlement. That structure, he said, could let liquidity providers that already hold assets, along with asset issuers, take part in market making with lower capital costs. Adams pointed to an example on Robinhood Chain, where 10 tokenized stocks and SPY have already formed liquidity pools on Uniswap. Over the first 12 days after launch, those pools recorded about $33 million in cumulative trading volume. He added that some trades can move directly between different stocks without routing through the U.S. dollar. Adams also said that even though Uniswap’s cumulative trading volume has reached about $4.6 trillion, AMMs are still at an early stage of development, with significant room left in both mechanism design and the broader ecosystem.
Uniswap founder Hayden Adams said tokenization of real-world assets is making the path clearer for automated market makers, or AMMs, to become a core trading engine in global financial markets.
In a post, Adams said blockchains can separate functions that have traditionally been vertically integrated by market makers, including capital, execution and settlement. That setup could allow liquidity providers that hold the assets, as well as asset issuers, to participate in market making with lower capital costs.
As an example, Adams said 10 tokenized stocks on Robinhood Chain, together with SPY, have already formed Uniswap liquidity pools. In the 12 days since launch, those pools have generated about $33 million in cumulative trading volume. He added that some transactions can be completed directly between different stocks rather than passing through the dollar.
Adams also said that although Uniswap’s cumulative trading volume has reached about $4.6 trillion, AMMs are still in the early stages of development. He said there is still substantial room for improvement in both mechanism design and the surrounding ecosystem.
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