Only 10% of Tokenized RWAs Actively Used in DeFi | Big Capital Left Idle

A recent report from BitMart, Dune, RedStone, and Optimism reveals a shocking trend: only 10% of tokenized real-world assets (RWAs) are being utilized as collateral in decentralized finance (DeFi) lending markets as of May 2026. This raises questions about why the remaining 90% of these assets remain dormant in wallets.

Report Highlights

The 28-page report provides an in-depth look at the state of RWA markets. Key findings show that the on-chain total value locked (TVL) in RWAs, excluding stablecoins, soared from roughly $6 billion in early 2025 to an impressive figure by April 2026 — nearly a fivefold increase within 15 months.

Interestingly, despite the impressive market size, only about $27 billion in tokenized RWAs is actively being used, indicating significant inefficiencies. "The composability gap is the biggest takeaway here. Tokenization alone isn’t enough. Real growth requires efficient use in DeFi," remarked one industry commentator.

Disparities in Tokenization

The report highlights the stark contrast in usage among different types of RWAs. Treasuries represent 48.5% of tokenized assets under management but account for just 2% of DeFi deposits. In contrast, private credit comprises 17% of assets but makes up around 80% of DeFi deposits.

Yield economics appear to drive this discrepancy. When credit yields surpassing 6% are compared with a stablecoin borrowing rate around 3%, it's clear why private credit sees more action than treasuries. "Seeing that idle capital finally get put to work is the kind of market maturity we need," said another player in the space.

The Road Ahead for RWAs

As demand for tokenized RWAs continues to grow, the global high-net-worth and ultra-high-net-worth populations hold around $90 trillion in investable assets. A mere 5% allocation could turbocharge the current RWA market significantly.

However, legal frameworks like the GENIUS Act, passed in July 2025, and the MiCA regulations present a robust foundation. The primary bottlenecks now involve custody standards, cross-chain liquidity, and institutional reporting infrastructure.

"RWA adoption isn’t lacking demand — it’s lacking usable infrastructure. The next big DeFi race will be composability," one expert pointed out.

Key Insights

• △ A mere 10% of tokenized RWAs are actively used in lending markets.

• ▽ Treasuries make up 48.5% of tokenized assets but only account for 2% of DeFi activity.

• ※ "Great report; idle capital is exactly the next big opportunity."

In a time marked by rapid developments in DeFi, the focus will need to shift toward enhancing infrastructure to unlock the vast potential of RWAs. With significant capital just waiting to be utilized, the future may hold interesting possibilities for the market.

Expectations for RWA Transition

As we look ahead, expect a gradual shift towards the active utilization of tokenized RWAs as DeFi markets mature. Experts estimate that over the next 12 months, the proportion of used RWAs could rise from 10% to around 25%. This may be driven by enhanced custody solutions and interoperability between blockchains, enabling wider access for institutional investors. With an increasing number of players entering the market and regulatory clarity improving, there’s a strong chance the dormant capital will finally be brought into active circulation, highlighting the importance of effective infrastructure in transforming potential into reality.

Uncommon Paradigm from History

The current landscape of RWAs in DeFi can be likened to the early days of the internet in the late 1990s, when vast amounts of information were available but largely underutilized due to poor infrastructure and user comprehension. Just as companies like Amazon and eBay emerged to simplify online transactions, addressing user needs, we are likely to see innovative platforms develop within DeFi that will harness the potential of RWAs. This parallel underscores the inevitability of evolution in the market, reminding us that with the right tools and understanding, even dormant assets can awaken and reshape economic landscapes.