DeFi TVL Share of Real-World Asset (RWA) Protocols Doubles Since July

Real-world asset (RWA) protocols now represent 3.69% of the total value locked (TVL) in decentralized finance (DeFi).

According to the latest findings by on-chain analytic platform IntoTheBlock, this marks a notable increase from 1.77% in July.

RWA Protocols Expand Presence in DeFi

The consistent growth essentially highlights the surging integration of Real-World Assets (RWAs) within the DeFi ecosystem, as traditional assets such as real estate, commodities, and bonds are increasingly being tokenized and used as collateral in decentralized lending and borrowing protocols.

ITB’s tweet read,

“Real World Asset (RWA) protocols now account for 3.69% of DeFi’s TVL, a significant rise from 1.77% in July. This steady uptrend shows the growing integration of real-world assets within the DeFi ecosystem.”

CoinGecko also pointed out that a recent analysis predicted the market for RWAs will surge from $118 billion to $10 trillion by 2030.

With clearer regulations and growing interest from institutional investors, RWA tokenization is expected to unlock liquidity for private equity, real estate, and other viable assets, as per the prominent crypto data aggregator.

Ripple and MANTRA Lead Tokenization Efforts

Despite initial skepticism, the tokenization of RWAs has seen significant growth in recent years, drawing interest from both individual and institutional players. For instance, blockchain company Ripple partnered with the Axelar Foundation in February this year to boost XRP Ledger’s (XRPL) interoperability, with a strong emphasis on promoting the tokenization of RWAs.

By integrating Axelar’s network, the collaboration aims to strengthen XRPL’s DeFi ecosystem by providing essential liquidity for stablecoins and other high-value assets.

MANTRA, a Layer 1 blockchain specializing in Real-World Assets (RWA), received $11 million in a funding round in March, which aimed to accelerate its mission of scalable RWA tokenization.

The fresh capital will be poured towards key initiatives, including the establishment of regulatory-compliant infrastructure aligned with global standards, equipping developers with tools to build RWA-focused protocols on the MANTRA Chain, and expanding tokenization efforts in the MENA and Asia markets.