Web3 is a growing trend for digitizing financial instruments.
According to DeFiLlama, the total value locked is distributed across 79 DeFi platform, and 36% of it comes from the top RWA protocols. The top three RWA protocols—Maker RWA, BlackRock BUIDL and Ethena USDtb—hold $1.298 billion, $1.232 billion and $1.182 billion in TVL, respectively.
As investors flood the tokenized RWA market, analysts are predicting a boom. VanEck is a global asset management firm. predicted RWAs’ market capitalization will exceed $50 billion by 2025.
Total-value locks is a metric that’s commonly used to gauge user demand for DeFi. This metric measures the amount of assets stored on a specific decentralized platform. Real-world Asset Tokenization is the process of creating digital versions of tangible assets such as T-bills (T-bills), real estate and gold on blockchains.
Maker's RWA is backed by real estate and digitized traditional RWAs such as treasury bonds, while USDtb is backed by tokenized BlackRock money-market fund shares. BUIDL, a tokenized fund for money-market funds built on Ethereum’s network.
The tokenization of RWAs is gaining traction, as more investors are turning to investments based on stablecoins or treasury securities to protect against volatility in the crypto market and diversify portfolios.
BlackRock launched its BlackRock ETF in early 2013. BUIDL holds $373 million in assets, while other tokenized treasury-backed funds such as Franklin Templeton's BENJI and Ondo Finance's OUSG are also attracting investor dollars. Meanwhile, interest in stablecoin-backed tokenized funds is picking up, with Ethena USDtb's TVL increasing 1,000% over the past month, according to DeFiLlama.
James Rubin, Editor
