The adoption of real-world assets (RWAs) in decentralized finance (DeFi) is accelerating, with deposits linked to tokenized assets across DeFi lending platforms and decentralized exchanges more than tripling over the past year.
According to a report from CoinShares and Token Terminal, RWA deposits increased from $2.3 billion to $7.4 billion, even as overall DeFi deposits declined by around 15% during the same period.
The growth highlights a shift in investor interest toward blockchain-based representations of traditional assets that can generate returns and serve as collateral within decentralized financial systems.
Tokenized Assets Drive Growth in DeFi Markets
The report showed that spot trading volumes for tokenized assets on decentralized exchanges rose 220% year over year, while trading activity for traditional crypto-native assets on DEX platforms dropped by approximately 70%.
Much of the demand has been driven by products such as tokenized Treasury funds, multi-strategy investment funds, and private credit, as investors look for assets that combine traditional yield opportunities with blockchain-based accessibility.
Taran Dhillon, head of digital assets at RWA-focused investment firm Kula, said the success of tokenization should no longer be measured only by the value of assets brought on-chain.
Instead, the key development is the growing use of tokenized assets as functional financial instruments. Their expansion despite a broader DeFi slowdown suggests that adoption is increasingly driven by real utility rather than market speculation.
Ethereum Remains the Leading Blockchain for RWA Adoption
Ethereum continues to dominate the tokenized asset sector, hosting nearly 70% of RWA collateral used in DeFi lending.
Meanwhile, other blockchain networks have gained traction in specific areas. Solana has expanded its role in tokenized asset spot trading, while Hyperliquid has become a notable platform for tokenized perpetual futures markets.
This distribution highlights the growing specialization among blockchain networks, with different ecosystems competing for roles across various segments of the RWA economy.
Tokenized Assets Still Represent a Small Share of Global Markets
Despite rapid growth, tokenized assets remain a relatively small part of the global financial system.
The report noted that only around $2.2 billion of the more than $100 trillion global equity market has been tokenized so far, a stage of development comparable to the early growth phase of stablecoins in 2019.
According to RWA.xyz, the total value of on-chain real-world assets has reached approximately $37.89 billion, excluding stablecoins.
Treasury Assets Lead the Tokenized RWA Market
US Treasury debt remains the largest category within the tokenized RWA sector, representing more than $16.1 billion of tokenized assets.
Other major categories include:
Commodities: $4.6 billion.
Active investment strategies: $3.6 billion.
Stocks: $2.5 billion.
The dominance of yield-generating assets shows that investors are primarily using tokenization to access traditional financial products through blockchain infrastructure.
What RWA Growth Means for the Future of Finance?
The rise of RWAs signals that blockchain adoption is moving beyond speculative crypto markets toward practical financial applications. The strongest growth is coming from assets that provide real economic value, such as government bonds and private credit, rather than purely digital-native products.
As institutions continue exploring tokenization, the competition may shift from simply bringing assets on-chain to building the infrastructure that enables trading, lending, and settlement of these assets at global scale. Ethereum’s dominance in RWA collateral also suggests that established blockchain networks with strong security and liquidity may play a central role in shaping the next phase of digital finance.