Creating liquidity in private markets is not about better tech like blockchain. The core challenge is one of market structure: finding a buyer when everyone wants to sell. Without a mechanism to provide a capital backstop during liquidity shocks, technology alone cannot create a functional secondary market.

To de-risk investments and prevent surprise cash calls, PropTech platform Mogul includes a 12-month vacancy reserve in each property's initial fundraising. This ensures the asset can sit completely empty for a year without requiring additional funds from its fractional owners.

The secondary market is no longer just for LPs seeking early liquidity. With trillions in unrealized private assets, it's becoming a primary way for investors to gain exposure, akin to buying a public stock. One can now buy into established private companies directly, not just new funds.

The success of platforms like Depop, where two-thirds of buyers are also sellers, reveals a powerful new model. This dynamic, where users fluidly participate on both sides of the marketplace, creates a virtuous cycle of high liquidity that accelerates growth much faster than traditional models.

The growth of the private credit secondary market is primarily limited by a shortage of specialized, well-capitalized buyers, not a lack of sellers. As more dedicated funds with the appropriate cost of capital enter the space, they effectively "build the market," unleashing latent supply from LPs and GPs who previously lacked a viable exit path.

Kalshi uses market makers to solve the cold-start problem and bootstrap liquidity for new contracts. However, as a market becomes more successful and organic volume grows, the percentage of market maker participation intentionally decreases. Their role is to ignite the flywheel, not to be the engine itself.

Mogul's revenue model includes a 5% platform fee from investors plus an additional 1.5-2% fee paid by the property seller. By acting as its own buyer's broker, the platform taps into a second revenue stream that doesn't dilute investor returns.

The key benefit of tokenizing private credit or real estate is not just efficiency, but fractionalizing large, illiquid assets into smaller, tradable units. This unlocks global capital from family offices and other investors who cannot afford the traditional high minimum investment tickets.

Despite the proliferation of platforms for fractional real estate investing, a huge opportunity remains. There is no mainstream financial product allowing consumers to invest directly in the appreciation of raw land, arguably the most stable, inflation-resistant asset on Earth, without buying a whole parcel.