Real-World Assets Rise in DeFi and Become the Fifth Category by TVL in 2025
In DeFi, real-world asset protocols climb fast. They now stand as the fifth category by locked value and push past older decentralized exchanges. Data from DefiLlama shows these assets hold around $17 billion. This sum grew from $12 billion at the close of 2024. The boost lifts assets like Treasurys, private credit, and similar claims into a main role in DeFi systems.
The Growth of Real-World Asset Tokenization
At the start of 2025, real-world assets did not rank among the top ten in DeFi. Vincent Liu, investment head at Kronos Research, points to balance-sheet rewards over wild bets. The current rate level makes tokenized US Treasurys and private credit more appealing. Investors see yield on-chain that fits their needs. Clear regulations now cut limits. Investment flows grow because tokenized assets take on a central role.
Concentration of Market and Blockchains
By early 2025, tokenized assets without stablecoins reached about $24 billion. Private credit and tokenized Treasurys drive this amount. Ethereum stays the top chain for settling these tokens and funds. A few issuers on Ethereum control most of this market. Other chains such as BNB Chain, Avalanche, Solana, Polygon, and Arbitrum hold small pieces of the token spread.
Permissioned networks like Canton Network have grown as centers for issuing assets at scale. These hubs, defined by steady rules and privacy, cover over 90% of their market share. They connect to DeFi funds and data streams while keeping to needed rules.
Drivers of Growth: Tokenized Treasurys and Institutional Funds
Tokenized US Treasurys draw many investors to real-world assets. Several funds and platforms push these tokens above the multi-billion mark by year’s end. Firms such as BlackRock’s USD Institutional Digital Liquidity Fund, Circle’s USYC, Franklin Templeton’s BENJI, and Ondo’s OUSG join the effort, raising large sums together.
Liu points out that the main test is not the tokenization process. The task now is to add liquidity and bind these tokens to old market systems. In 2026, watchers will check who holds the right to issue, how tokens back loans, and which trading sites capture later flows. Each point will mark the next stage of growth.
Tokenized Commodities Gain Support: Gold and Silver
Gold and silver push the tokenized commodities sector. Numbers now show digital metals at around $4 billion. Digital gold tokens such as Tether Gold and Paxos Gold work in step with rising spot prices and draw more buyers.
Liu explains that the trends lift metal tokens from small projects to full market assets. Better price points and secure custody help these tokens join well with both DeFi and regular markets.
Looking Forward: Collateral and Market Shifts
The changes seen in 2025 set the stage for new steps in 2026. Liu sees strong metal prices inviting more issuers. This move will bring better liquidity and wider use beyond simple yield play.
Moving tokens across chains will grow when transfers between sites and networks grow easier. Such ease would let tokens work as shared collateral on several chains, not just on one.
Conclusion
The quick rise of real-world asset tokenization marks a change in DeFi. Old financial claims join blockchain systems. Holding one of the largest spots among DeFi sectors by locked value shows how far these assets have come. Firm interest, clear rules, and new tech drive this growth. The blend of old finance and new systems readies DeFi for more steps in the future.
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📝 About This Article
This article was generated by Hivebox AI in collaboration with AuCan Gold.
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