Real-world assets (RWAs) have overtaken decentralized exchanges (DEXs) to claim the fifth-largest spot in DeFi by TVL at $17 billion, per DefiLlama data. Surging from outside the top 10 earlier in 2025, this growth reflects strong institutional adoption driven by tokenized Treasurys and private credit.
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RWAs DeFi TVL surged to $17 billion, surpassing DEXs and ranking fifth behind lending, liquid staking, bridging, and restaking.
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Tokenized US Treasurys and private credit fuel the expansion amid higher institutional interest.
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Tokenized commodities like gold hit nearly $4 billion market cap, boosted by gold and silver rallies.
RWAs DeFi TVL reaches $17B, overtaking DEXs as top 5 category per DefiLlama. Tokenized Treasurys, private credit drive surge amid institutional inflows. Explore 2025 trends and 2026 outlook. Stay ahead in DeFi evolution.
DeFi sectors by total value locked. Source: DefiLlama (X/Twitter)How have RWAs become the fifth-largest DeFi category by TVL?
Real-world assets (RWAs) DeFi TVL has skyrocketed to $17 billion, eclipsing DEXs and securing the fifth position behind lending, liquid staking, bridging, and restaking, according to DefiLlama. This marks a dramatic rise from $12 billion in Q4 2024 and positions RWAs well ahead of their year-start standing outside the top 10 categories. Institutional interest, fueled by balance-sheet incentives and regulatory clarity, has propelled tokenized Treasurys and private credit to the forefront of this expansion.
At the onset of 2025, RWAs were not even among the top DeFi TVL categories tracked by DefiLlama. Fast forward to December, and the sector’s TVL has ballooned significantly, impressing analysts across the industry. DefiLlama highlighted this unprecedented climb, attributing it to practical yield-bearing opportunities on-chain. The convergence of traditional finance (TradFi) assets with blockchain infrastructure has unlocked billions in locked value, transforming RWAs from experimental tokens to core DeFi components.
This surge coincides with broader market dynamics, including higher-for-longer interest rates that make tokenized assets particularly appealing. Investors seek stable, yield-generating options amid volatility in native crypto tokens like BTC and ETH, which saw gains eroded after October’s leverage unwind. RWAs stand out as one of the resilient bright spots in 2025 DeFi performance.
What factors drove the RWAs DeFi TVL growth in 2025?
Vincent Liu, chief investment officer at Kronos Research, attributes RWA expansion to balance-sheet incentives rather than mere experimentation. Higher interest rates have rendered tokenized Treasurys and private credit highly attractive as on-chain, yield-bearing instruments. Improving regulatory clarity further reduces barriers for institutional investors, enabling smoother capital allocation into these protocols.
Tokenized US Treasurys have emerged as a flagship gateway product. Platforms such as BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) exemplify this trend, propelling the combined tokenized Treasury segment beyond multi-billion-dollar thresholds by December 2025. Liu emphasizes that tokenization hurdles are largely overcome; focus now shifts to liquidity, collateral deployment, and TradFi-crypto integration.
Tokenized commodities have also contributed substantially. Gold and silver price rallies, driven by inflation fears and dollar concerns, have funneled capital into products like Tether Gold and Paxos Gold. DefiLlama data shows tokenized commodities’ market cap approaching $4 billion, evolving from niche offerings to macro assets with robust demand, clear pricing, and seamless DeFi integration.
Interoperability remains a pivotal accelerator. Liu predicts true momentum when these assets fluidly traverse chains and venues, enhancing utility. Private credit protocols mirror this trajectory, offering institutional-grade yields tokenized on blockchains, further bolstering TVL inflows. Collectively, these elements underscore RWAs’ maturation, with TVL metrics reflecting genuine adoption over hype.
Frequently Asked Questions
What is the current RWAs DeFi TVL and its ranking among sectors?
RWAs DeFi TVL stands at $17 billion as of December 2025 per DefiLlama, ranking fifth-largest behind lending, liquid staking, bridging, and restaking. This surpasses DEXs, up from $12 billion in Q4 2024, driven by tokenized real assets entering mainstream DeFi.
Why are tokenized Treasurys leading the RWAs TVL surge?
Tokenized Treasurys deliver reliable on-chain yields amid elevated rates, attracting institutions via products like BlackRock BUIDL. Regulatory progress lowers entry friction, positioning them as a preferred gateway while liquidity and TradFi bridges evolve for broader deployment.
Key Takeaways
- RWAs claim top 5 DeFi TVL spot: $17 billion TVL overtakes DEXs, signaling institutional shift from speculation to yield strategies.
- Tokenized Treasurys dominate: Gateway assets exceed billions in value, backed by BlackRock BUIDL and peers amid rate regimes.
- Commodities amplify growth: Gold/silver tokens near $4B cap; prioritize liquidity and cross-chain use for 2026 acceleration.
Conclusion
Real-world assets RWAs DeFi TVL has redefined sector hierarchies, hitting $17 billion to rank fifth per DefiLlama amid tokenized Treasurys and commodities momentum. Expert insights from Vincent Liu at Kronos Research highlight shifting priorities to liquidity and integration. As 2026 approaches, monitor collateral uses and secondary markets for sustained RWA dominance in DeFi ecosystems.
