Crypto: Tokenized Finance Takes Off as DeFi Loses Ground

Tokenized RWAs move against the crypto market trend. Their deposits in lending protocols and decentralized exchanges reach $7.4 billion. Meanwhile, the entire DeFi records a contraction of about 15%.

RWAs increase from $2.3 to $7.4 billion

Between Q2 2025 and Q2 2026, deposits of tokenized RWAs more than tripled. They rose from $2.3 billion to $7.4 billion. This increase confirms the turning point of the crypto market already driven by RWAs, but it only measures assets placed in lending protocols and DEXs. It does not represent the entire sector capitalization.

This nuance matters. The total value of tokenized funds, stocks, and commodities on blockchains had already exceeded $40 billion. The figure of $7.4 billion shows something else: these assets are no longer simply held in wallets. They are now used as collateral, liquidity sources, or borrowing support.

Tokenized funds backed by treasury bonds dominate this new demand. Products like BlackRock’s BUIDL, JTRSY, or sUSDS allow investors to continue earning yield while mobilizing their assets in decentralized finance. Private credit and certain market-neutral strategies complement this offer.

The economic logic remains simple. An investor prefers to deposit an asset that continues to generate interest rather than fully immobilized capital. RWAs thus reduce the opportunity cost of collateral and bring traditional yields closer to crypto infrastructures.

DeFi declines, but tokenized assets gain utility

The contrast with the rest of DeFi is particularly marked. The sector’s overall deposits decreased by approximately 15% year-over-year. This decline reflects both investor withdrawals and the drop in prices of several crypto assets. Yet, RWAs continue to attract capital.

The same divergence appears in trading. Spot volumes on DEXs fell by about 70%, while tokenized RWA trades increased by nearly 220%. Tokens backed by gold, notably XAUT and PAXG, significantly contributed to this acceleration.

Perpetual contracts also follow this trend. Activity increases around oil, precious metals, the S&P 500, Nasdaq 100, and semiconductor manufacturers’ stocks. The blockchain thus does not necessarily replace traditional markets. It rather becomes a new infrastructure to trade them continuously.

This development continues the growth observed when the RWA market was already approaching $35 billion. Crypto investors now seek assets that are understandable, liquid, and capable of generating regular yields more than technical novelty.

Ethereum maintains a dominant position in this transformation. Nearly 70% of RWA deposits are placed in lending protocols built on its ecosystem. Solana and Plasma also gain ground, but Ethereum’s liquidity depth still gives it a clear lead.

Crypto shifts towards hybrid finance

The rise of RWAs does not mean the disappearance of DeFi. It rather shows that decentralized finance is changing composition. Pure crypto assets lose some weight, while bonds, gold, private credit, and tokenized stocks find new uses on blockchains.

This convergence can attract more institutions. Settlements become faster, markets remain open permanently, and assets can be programmed or used as collateral. But RWAs retain off-chain dependencies. Their value still relies on an issuer, a custodian, legal documents, and the real existence of the represented asset.

Growth must therefore be accompanied by more transparency. Investors must be able to verify reserves, rights attached to tokens, repayment conditions, and counterparty risks. An efficient blockchain does not automatically fix a fragile legal structure.

The current movement resembles less a victory of RWAs over DeFi than a reallocation of crypto capital. The recent contraction of stablecoins in favor of tokenized treasury products confirms this search for yield. The $7.4 billion deposited shows that tokenization is gradually leaving the promise stage. It begins to become an active layer of the financial system.