Real-world asset (RWA) protocols have surged to become the fifth-largest category in decentralized finance (DeFi) by total value locked (TVL), surpassing decentralized exchanges (DEXs). As of now, RWAs command approximately $17 billion in TVL, a significant increase from $12 billion in the last quarter of 2024, marking their rapid transition into essential components of DeFi infrastructure.
According to DefiLlama, RWAs were not even among the top ten categories at the beginning of the year. The rise of these assets, including tokenized Treasurys and private credit, is attributed to a shift in focus towards balance-sheet incentives rather than mere experimentation, as noted by Vincent Liu, chief investment officer at Kronos Research.
Additionally, the market for RWAs, excluding stablecoins, reached about $24 billion earlier this year, with Ethereum remaining the preferred public settlement layer for on-chain debt and fund structures. Various other networks like BNB Chain, Avalanche, and Solana have begun to capture modest shares of the RWA market. Meanwhile, platforms such as the Canton Network are providing a regulated environment for institutional participants, holding over 90% of the market share.