Multiliquid has raised a seed round led by Polychain to build an institutional liquidity protocol aimed at making tokenized funds usable as near-instant sources of on-chain liquidity, according to Uniform Labs. The round brings the company’s total funding to $8 million, with Strobe Ventures, CMT Digital, Metalayer Ventures, Generative Ventures and Circle Ventures also participating.
The company is targeting a persistent friction in tokenized real-world assets: many funds can be bought or redeemed only through issuer-operated processes that may take several days to settle. Multiliquid says its protocol would allow a holder of a tokenized asset to exchange it for a stablecoin in one atomic transaction, providing a route to liquidity without waiting for the underlying fund’s standard redemption cycle.
Atomic settlement means both sides of a trade are completed simultaneously or neither side is completed. In Multiliquid’s model, that structure is intended to allow tokenized fund holders to convert their positions into stablecoins immediately, while stablecoin holders could gain exposure to regulated tokenized assets through the same process.
Seed funding targets tokenized-asset liquidity
Uniform Labs described Multiliquid as a neutral, compliance-first liquidity layer for tokenized assets, including tokenized Treasury products, money market funds, private-credit vehicles and other real-world assets. The protocol is designed as a 24/7 settlement platform that connects regulated asset tokens with stablecoins.
The company said Multiliquid supports tokenized funds from Wellington Management, VanEck, Janus Henderson and Fasanara, along with major stablecoins including USDC. The announcement did not specify which individual funds are available through the protocol, the transaction volumes it currently handles, or its deployment status.
Multiliquid was founded by former Standard Chartered and UniCredit employees, according to Uniform Labs. Its website is listed as multiliquid.xyz.
The seed financing puts Multiliquid among a growing group of projects trying to solve the operational gap between regulated on-chain financial products and the always-open trading environment of public blockchains. Tokenized Treasury and money-market products can offer holders exposure to short-term yields, but their utility for active on-chain portfolio management depends heavily on whether they can be converted into spendable stablecoins quickly.
Settlement delays limit the use of tokenized funds
Traditional fund mechanics can create a mismatch with blockchain markets. A tokenized money-market fund may represent a claim on a regulated underlying vehicle, yet subscriptions and redemptions can retain conventional processing windows, fund cut-off times and settlement requirements.
That can leave holders with a choice between maintaining capital in a yield-bearing fund and holding stablecoins ready for immediate deployment. A liquidity protocol capable of facilitating continuous swaps could reduce that trade-off, provided it has sufficient liquidity and preserves the compliance requirements attached to the underlying assets.
Multiliquid’s model does not eliminate the underlying fund’s redemption process. Instead, it is designed to create a secondary on-chain conversion route between tokenized assets and stablecoins. A market participant seeking stablecoin liquidity could exchange the fund token with another participant or liquidity provider, while the longer fund-level settlement process remains separate from that transaction.
The distinction places considerable weight on liquidity providers and market depth. Fast conversion is only useful at scale if the protocol can absorb sizable orders without steep price differences between the tokenized asset and the stablecoin received. The announcement identifies the protocol’s settlement design and supported assets, but does not provide figures on available liquidity, spreads or capacity during periods of market stress.
Stablecoin yield restrictions create a role for fund tokens
Uniform Labs also linked the protocol’s potential use to U.S. stablecoin policy. The company said federal stablecoin frameworks, including the GENIUS Act, prohibit payment stablecoin issuers from paying yield directly to holders.
Where payment stablecoins cannot distribute interest, tokenized Treasury and money-market products offer a separate structure for users seeking yield exposure on-chain. Yet the return comes with a practical cost if converting the asset back into stablecoins requires days rather than minutes.
Multiliquid is positioning itself between those two functions: stablecoins for immediate settlement and trading, and regulated tokenized funds for holding cash-like assets that may generate returns. The approach could allow institutions and sophisticated traders to keep balances in tokenized funds during quieter market periods, then seek stablecoin liquidity when they need to settle transactions or adjust positions.
That use case depends on the protocol’s ability to maintain reliable prices and available liquidity around the clock. A tokenized Treasury fund may have a relatively stable underlying value, but an on-chain market for that token can still experience temporary dislocations if liquidity is thin or demand to exit rises sharply.
Tokenized Treasury market has reached $15 billion
Demand for tokenized real-world assets has expanded sharply, according to the RWA Foundation. The organization said the market for tokenized real-world assets reached $39 billion by October 2026, with tokenized U.S. government debt accounting for more than $15 billion of the total.
Treasury products have become a major segment because they combine short-duration government debt with on-chain transferability. Asset managers including BlackRock and Franklin Templeton have already issued tokenized Treasury funds, demonstrating that established fund firms see a commercial market for blockchain-based fund shares.
Multiliquid’s funding round reflects a more specific bet: the next challenge for tokenized funds is less about proving that regulated assets can be represented on-chain and more about making them functional within on-chain capital markets. If tokenized fund holders can reliably convert positions into stablecoins in a single transaction, those assets could become more practical collateral, treasury-management tools and sources of deployable liquidity.
The protocol will face the test common to on-chain market infrastructure: attracting enough regulated assets, stablecoin liquidity and active counterparties to make instant conversion work beyond small transactions. Polychain and Circle Ventures’ participation gives Multiliquid backing from firms closely associated with digital-asset market infrastructure, while the protocol’s value will ultimately rest on execution, liquidity depth and the compliance framework governing each supported asset.
Explore how tokenized assets and stablecoins reshape liquidity—dive into this deep dive on tokenized RWAs today.
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