Tokenized Asset Deposits Balloon to $7.4B as On-Chain Use Accelerates

Real-world asset (RWA) deposits in DeFi protocols surged from $2.3 billion to $7.4 billion over the past year, marking a significant decoupling from the broader 15% decline in total DeFi deposits. According to a report by CoinShares and Token Terminal, this growth is driven by investors seeking yield-generating assets like tokenized Treasuries, private credit, and multi-strategy funds. Spot trading volumes for these assets on decentralized exchanges jumped 220%, contrasting sharply with a 70% decline in native crypto DEX volumes. Ethereum maintains its dominance as the primary host for RWA collateral, accounting for nearly 70% of the market. While the total on-chain RWA value has reached approximately $37.89 billion, excluding stablecoins, the sector remains in an early growth phase compared to traditional global markets. US Treasury debt leads the sector with $16.1 billion in tokenized value, followed by commodities and active strategies. This shift highlights a transition where tokenized assets are increasingly utilized for their financial utility as collateral rather than purely speculative sentiment.