Close Menu
    Facebook X (Twitter) Instagram
    • Privacy Policy
    • Terms Of Service
    • Social Media Disclaimer
    • DMCA Compliance
    • Anti-Spam Policy
    Facebook X (Twitter) Instagram
    Fintech Fetch
    • Home
    • Crypto News
      • Bitcoin
      • Ethereum
      • Altcoins
      • Blockchain
      • DeFi
    • AI News
    • Stock News
    • Learn
      • AI for Beginners
      • AI Tips
      • Make Money with AI
    • Reviews
    • Tools
      • Best AI Tools
      • Crypto Market Cap List
      • Stock Market Overview
      • Market Heatmap
    • Contact
    Fintech Fetch
    Home»Crypto News»DeFi»RWAs Overtake DEXs as Fifth-Largest Category in DeFi by TVL
    RWAs Overtake DEXs as Fifth-Largest Category in DeFi by TVL
    DeFi

    RWAs Overtake DEXs as Fifth-Largest Category in DeFi by TVL

    December 29, 20253 Mins Read
    Share
    Facebook Twitter LinkedIn Pinterest Email
    murf

    Real-world asset (RWA) protocols are one of decentralized finance’s (DeFi’s) winners in 2025, overtaking decentralized exchanges (DEXs) to become the fifth-largest category by total value locked (TVL), according to DefiLlama.

    RWAs now account for about $17 billion in TVL, up from $12 billion in Q4 2024, highlighting how quickly tokenized Treasurys, private credit and other real-world claims have moved from niche experiments to core DeFi plumbing. As DefiLlama noted, “At the start of this year, they weren’t even in the top 10 categories.”

    Vincent Liu, chief investment officer at Kronos Research, told Cointelegraph that RWA growth is being driven by “balance-sheet incentives rather than experimentation,” with higher-for-longer rates making tokenized Treasurys and private credit attractive as onchain, yield-bearing assets, amid improving regulatory clarity that is lowering friction for institutional allocators.

    RWAs move into the DeFi core

    Earlier this year, RWAs excluding stablecoins had grown to about $24 billion, with private credit and tokenized Treasurys identified as the main growth engines and Ethereum as the dominant public settlement layer for onchain debt and fund structures.

    Related: Emerging market economies to drive RWA tokenization in 2026: Crypto exec

    Customgpt

    Through 2025, that market has remained concentrated around a small group of large issuers and vehicles on Ethereum, while RWA.xyz data shows a second tier of networks, including BNB Chain, Avalanche, Solana, Polygon and Arbitrum, each capturing low‑to-mid single‑digit percentage shares of public‑chain RWA value.

    RWA League Table | Source: RWA.xyz

    In parallel, permissioned infrastructure like Canton Network has become a major institutional hub, with over 90% of the total market share, hosting large RWA programs in a privacy‑preserving, regulated environment that can plug into DeFi data and liquidity rails.

    Related: Canton token rallies 27% after DTCC outlines tokenized Treasury plans

    What’s driving flows?

    Tokenized US Treasurys remain the gateway product, with platforms like the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), Circle’s USYC, Franklin Templeton’s BENJI, Ondo’s OUSG, and similar funds pushing the combined tokenized Treasury segment above the multi‑billion‑dollar mark by December.

    Liu said that “the constraint is no longer tokenization itself, but liquidity, and integration into TradFi,” adding that attention in 2026, “attention should shift from headline TVL to control and usage, who owns issuance, where RWAs are deployed as collateral, and which venues capture secondary market flow.”

    Gold, silver, and the 2026 story

    Rallies in gold and silver are adding a fresh leg to the RWA trade, pulling more capital into tokenized commodities. Recent data put tokenized commodities’ market cap near $4 billion, led by gold products such as Tether Gold and Paxos Gold, which have expanded alongside spot metals, pushing toward new highs.

    Liu said these moves are “elevating [tokenized commodities] from niche RWAs to macro-relevant assets with real demand for on-chain access and settlement in a 24/7 market,” helped by clearer pricing and custody standards that make them easier to plug into DeFi and institutional systems.

    Into 2026, he pointed to “behavioral validation” as gold and silver break highs, arguing that price strength attracts issuance, which attracts liquidity and reinforces adoption beyond pure yield narratives.

    He also highlighted interoperability as another key signal, and said that “real acceleration” will come when “tokenized commodities can move seamlessly across venues and chains, functioning as neutral collateral rather than isolated products.”

    changelly
    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Fintech Fetch Editorial Team
    • Website

    Related Posts

    How World Liberty’s $3.4B USD1 Stablecoin Powers Onchain Lending Markets

    How World Liberty’s $3.4B USD1 Stablecoin Powers Onchain Lending Markets

    February 4, 2026
    Real-World Assets Don’t Need New Gatekeepers

    Real-World Assets Don’t Need New Gatekeepers

    February 3, 2026
    ParaFi Capital Backs Jupiter with $35M Strategic Investment

    ParaFi Capital Backs Jupiter with $35M Strategic Investment

    February 3, 2026
    Step Finance Treasury Breach Sparks $27M SOL Loss, STEP Plunges

    Step Finance Treasury Breach Sparks $27M SOL Loss, STEP Plunges

    February 1, 2026
    Add A Comment

    Comments are closed.

    Join our email newsletter and get news & updates into your inbox for free.


    Privacy Policy

    Thanks! We sent confirmation message to your inbox.

    livechat
    Latest Posts
    Nearing Retirement? 4 Ways to Catch Up on Savings if You're Behind.

    Approaching Retirement? 4 Strategies to Boost Your Savings if You’re Lagging.

    February 3, 2026
    Qwen Team Releases Qwen3-Coder-Next: An Open-Weight Language Model Designed Specifically for Coding Agents and Local Development

    Qwen Team Releases Qwen3-Coder-Next: An Open-Weight Language Model Designed Specifically for Coding Agents and Local Development

    February 3, 2026
    How To Build An AI Business For $1 In 2026

    How To Build An AI Business For $1 In 2026

    February 3, 2026
    How to Make Animated Cartoon videos with AI (Full Course)

    How to Make Animated Cartoon videos with AI (Full Course)

    February 3, 2026
    How to Use AI to Make Money, Save Time, and Be More Productive

    How to Use AI to Make Money, Save Time, and Be More Productive

    February 3, 2026
    quillbot
    LEGAL INFORMATION
    • Privacy Policy
    • Terms Of Service
    • Social Media Disclaimer
    • DMCA Compliance
    • Anti-Spam Policy
    Top Insights
    How World Liberty’s $3.4B USD1 Stablecoin Powers Onchain Lending Markets

    How World Liberty’s $3.4B USD1 Stablecoin Powers Onchain Lending Markets

    February 4, 2026
    Solana (SOL) Hovers Near $100 as Long-Term Holders Pull Back — Downside Risk Builds

    Why These Three Altcoins Could Cause Significant Liquidations This Week

    February 3, 2026
    frase
    Facebook X (Twitter) Instagram Pinterest
    © 2026 FintechFetch.com - All rights reserved.

    Type above and press Enter to search. Press Esc to cancel.