Centrifuge’s Q3 TVL Falls 38% to $1 Billion as Tokenized Assets Expand
RWA Signal Insight
Private CreditCentrifuge reported a total value locked (TVL) of $1 billion at the end of the third quarter, representing a 38% decline quarter-over-quarter despite significant cross-chain expansion. The platform successfully extended the reach of New York Life Investment Management’s (NYLIM) U.S. high-yield corporate bond strategy to the Solana and Avalanche blockchains. Additionally, Centrifuge assets were integrated into the Arc and X Layer networks, broadening the protocol's deployment footprint across Ethereum, Pharos, and other chains. While platform-wide TVL decreased, the broader tokenized asset market reached a supply of $33.9 billion, marking a 140% year-over-year increase. Cash equivalents currently dominate this market with $17.8 billion in supply, though tokenized credit shows higher utilization rates within lending protocols. Specifically, 19% to 21% of tokenized credit supply is actively deployed in lending protocols, compared to only 0.4% for cash-equivalent assets. These developments highlight a shift toward multi-chain interoperability for institutional credit products while underscoring the varying liquidity and utility profiles across different RWA asset classes.
Key points
- Centrifuge TVL reached $1 billion, down 38% quarter-over-quarter.
- NYLIM high-yield bond strategy expanded to Solana and Avalanche.
- Total tokenized asset supply hit $33.9 billion, growing 140% annually.
- Tokenized credit shows 19-21% utilization in lending protocols versus 0.4% for cash equivalents.
Background
Centrifuge is a decentralized finance protocol designed to bridge real-world assets onto the blockchain by tokenizing private credit and other financial instruments. It allows asset originators to fund their portfolios by accessing liquidity from decentralized markets while providing investors with transparent, on-chain exposure to yield-generating assets.