TheBlock
Deposits into tokenized real-world asset lending platforms and DEXs tripled year-over-year to $7.4 billion, even as total DeFi deposits fell roughly 15%, according to a new CoinShares and Token Terminal report.
The divergence is the story. RWA-focused protocols absorbed capital while the broader DeFi sector contracted, a rotation consistent with the institutional tilt toward yield-bearing, onchain versions of conventional assets.
Why it matters
Tokenized US Treasuries, private credit, and gold tokens did most of the work. These are conventional instruments wrapped for onchain use, with yields tied to offchain rates rather than crypto-native incentives, structurally closer to money-market flows than to speculative DeFi TVL.
Market impact
The pattern suggests institutions continue to engage with DeFi through the RWA corridor even when crypto-native activity cools. Watch whether tokenized Treasury AUM keeps expanding into Q2, and whether private credit RWAs cross $1B in deposits. Either marker would confirm the rotation is structural rather than a passing reflex.
Frequently asked questions
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What drove tokenized RWA deposits to $7.4 billion?
Tokenized US Treasuries, private credit, and gold tokens drove most of the growth, with yields tied to offchain rates rather than crypto-native incentives.
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How much did broader DeFi deposits contract?
Total DeFi deposits fell roughly 15% over the same year, per the CoinShares and Token Terminal report.
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Why are tokenized RWAs attracting capital while DeFi contracts?
RWA deposits track offchain rates and look more like money-market flows than speculative DeFi TVL, keeping institutional capital engaged when crypto-native activity cools.
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What is the institutional significance of RWA growth?
The growth suggests institutions engage with DeFi through the RWA corridor, using tokenized Treasuries and private credit as a yield-bearing on-chain alternative.
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What milestones would confirm the RWA rotation is structural?
Continued tokenized Treasury AUM expansion into Q2 and private credit RWAs crossing $1B in deposits would confirm the trend, the report notes.
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