Report Shows Just 10% of Tokenized RWAs in DeFi | Unused Potential

A recent report from BitMart, Dune, RedStone, and Optimism highlights that as of May 2026, only 10% of tokenized real-world assets (RWAs) are being utilized in DeFi lending markets, while a staggering 90% sits idle. This raises critical concerns about the infrastructure necessary to unlock the potential of these assets within the sector.

Insightful Findings on Tokenization and DeFi

The 28-page report outlines the growth of tokenized asset markets, where total value locked (TVL) in on-chain RWAs surged from approximately $6 billion in early 2025 to nearly $30 billion just a year later. Despite this massive rise, the utilization of these assets in DeFi remains alarmingly low. Many observers note that the current bottlenecks stem more from infrastructure and composability rather than regulatory issues.

The Composability Gap

Experts are increasingly focusing on the composability gap as a significant issue. The report details contrasting asset categories:

• Treasuries: Representing 48.5% of tokenized assets, these account for only 2% of DeFi deposits.

• Private credit: Comprising 17% of total assets under management (AUM) but roughly 80% of DeFi deposits.

The disparity in usage is linked to yield economics, where private credit offers returns exceeding 6%, compared to stablecoin borrowing around 3%. One industry expert reflected:

"Tokenization alone isn’t enough—the real growth comes when RWAs can actually be used efficiently in DeFi."

Institutional Success and Challenges

BlackRock's investment platform for RWAs has expanded dramatically from a mere $200 million to substantial AUM. Three major factors contribute:

1. Brand Trust.

2. Compliant custody architecture, aided by partnerships with BNY Mellon and Securitize.

3. Multi-chain DeFi integration.

While regulatory frameworks like the GENIUS Act and MiCA have progressed, challenges persist, particularly regarding custody standards and cross-chain liquidity.

Future Outlook for RWAs

The opportunity for high-net-worth (HNW) individuals is significant, with a global investable asset reach of about $90 trillion. Allocating just 5% of that could boost the RWA market exponentially. Commenting on the current state, one insider stated:

"90% idle = massive unlock if composability gets fixed. RWA TVL 5x in 15 months is wild too."

Key Insights

• △ Only 10% of tokenized RWAs are being utilized in DeFi; a whopping 90% remains idle.

• ▽ Private credit dominates utilization, representing 80% of DeFi deposits; treasuries lag significantly.

• 🌐 Core issues lie in infrastructure and composability rather than regulation, emphasizing a need for improvements.

The report underscores a critical need for enhanced infrastructure to fully exploit tokenized RWAs within the DeFi sector. As this landscape continues to change, greater utilization in lending markets is anticipated over the next few years, driven by improved frameworks and increased trust among investors.