The Value of Locked Funds in Decentralized Finance Protocols Related to Real-World Assets Has More Than Doubled Since July
Decentralized Finance (DeFi) sees a surge in the integration of Real-World Assets (RWAs), representing 3.69% of the total value locked (TVL), according to IntoTheBlock's latest findings. This marks a considerable rise from 1.77% in July, showcasing the increasing adoption of RWAs within the DeFi ecosystem.
Traditional assets like real estate, commodities, and bonds are being tokenized and used as collateral in decentralized lending and borrowing protocols, hinting at the growing presence of RWAs in DeFi. According to IntoTheBlock's tweet, this steady uptrend underlines the expanding integration of real-world assets within the DeFi sphere.
CoinGecko's analysis anticipated the RWA market to balloon from $118 billion to $10 trillion by 2030. With increasingly clearer regulations and growing interest from institutional investors, RWA tokenization is expected to unlock liquidity for private equity, real estate, and other viable assets.
tokenization efforts, with Ripple partnering with the Axelar Foundation in February to boost XRP Ledger's interoperability, emphasizing the promotion of RWA tokenization. By integrating Axelar's network, the collaboration seeks to strengthen XRPL's DeFi ecosystem by providing essential liquidity for stablecoins and other high-value assets.
MANTRA, a Layer 1 blockchain specializing in Real-World Assets (RWA), raised $11 million during a funding round in March. The funds will be utilized towards establishing regulatory-compliant infrastructure, equipping developers, and expanding tokenization efforts in the MENA and Asia markets.
Enrichment Data reveals that by early 2025, the total market value of tokenized RWAs on public blockchains reached nearly $18 billion, representing an 80% increase from the previous year. The market capitalization of RWA crypto tokens exceeds $10.62 billion, showing a 61% increase from previous levels. Tokenization of RWAs is one of the key trends in DeFi for 2025, bridging traditional finance with DeFi by bringing tangible assets on-chain. Some reports predict that the tokenization of RWAs could reach $50 billion by 2025, although this figure might vary based on specific market conditions. The growth in RWA tokenization is expected to continue as more traditional financial institutions and investors become involved.
However, it is important to note that Ripple and MANTRA, while significant players in their respective domains, are not explicitly highlighted as key players in the RWA DeFi integration in the available search results. MakerDAO and Pendle, on the other hand, are notable players in DeFi, with Pendle enabling users to tokenize and trade future yields of various assets, including those derived from RWAs. Plume, an optimized blockchain for onboarding and managing RWAs, offers a platform for tokenizing diverse assets like real estate and commodities.
In conclusion, the integration of RWAs in DeFi is experiencing rapid growth, with both traditional financial institutions and DeFi platforms playing pivotal roles in this development.
- The integration of Real-World Assets (RWAs) in Decentralized Finance (DeFi) is not limited to lending and borrowing protocols; it also includes the use of technology like blockchain for tokenization, as demonstrated by MANTRA's $11 million funding round for enhancing tokenization efforts.
- The growth in RWA tokenization is not only anticipated by CoinGecko, but is also expected to continue as more traditional financial institutions become involved, potentially reaching $50 billion by 2025, according to some reports.
- In addition to MANTRA, platforms like Pendle and Plume are significant players in DeFi, with Pendle enabling the tokenization and trading of future yields of various assets, including RWAs, and Plume offering a blockchain platform for managing and tokenizing diverse assets like real estate and commodities.
