Crypto: The rise of tokenized finance, DeFi is ebbing

Tokenized real-world assets bucked the trend, with loans and decentralized exchange deposits reaching US$7.4 billion

Deposits in tokenized real-world assets (RWA) have more than tripled to US$7.4 billion. At the same time, the entire decentralized finance (DeFi) sector shrank by about 15%.

Quick overview of key points

·Tokenized RWA deposits increased from US$2.3 billion to US$7.4 billion, an increase of more than tripled.
·Overall DeFi fell by 15%, while RWA transaction volume increased by 220%.
·Treasury bonds, gold and private credit dominate this new phase of the crypto market.

RWA increased from US$2.3 billion to US$7.4 billion

From the second quarter of 2025 to the second quarter of 2026, the size of tokenized RWA deposits more than tripled, from US$2.3 billion to US$7.4 billion. This growth confirms a turning point in the crypto market that has been driven by RWA-although the data only measures assets deposited in lending agreements and decentralized exchanges (DEX) and does not represent the market value of the entire sector.

This nuance is important. The total value of funds, stocks and commodities monetized on the blockchain has exceeded US$40 billion. The $7.4 billion figure reveals another meaning: these assets are no longer just held in wallets, they are now used as collateral, a source of liquidity, or loan support.

Tokenized funds backed by government bonds dominate this new demand. BlackRock's products such as BUIDL, JTRSY or sUSDS allow investors to continue to earn income while mobilizing assets in decentralized finance. Private credit and certain market-neutral strategies complement this product portfolio.

The economic logic remains simple: investors prefer to deposit assets that continue to generate interest rather than completely frozen capital. As a result, RWA reduces the opportunity cost of collateral and more closely integrates traditional benefits with crypto infrastructure.

DeFi declines, but the increased practicality of tokenized assets

contrasts particularly sharply with the rest of DeFi. Overall deposits in this sector fell by approximately 15% year-on-year. The decline reflects investor withdrawals and declines in the prices of various crypto assets. However, RWA is still attracting capital.

The same differences also appear in the trading arena. Spot trading volume for DEX fell by approximately 70%, while trading volume for tokenized RWA increased by nearly 220%. Gold-backed tokens, especially XAUT and PAXG, have significantly contributed to this acceleration.

Perpetual contracts also follow this trend. Activities increased around oil, precious metals, the S & P 500, Nasdaq 100 and semiconductor manufacturer stocks. Therefore, blockchain does not necessarily replace traditional markets, but rather becomes a new infrastructure for trading these assets around the clock.

This development continues the previous growth momentum when the RWA market reached close to US$35 billion. Crypto investors now value assets that are easy to understand, highly liquid, and generate stable returns rather than technological novelties.

Ethereum remains dominant in this transformation. Nearly 70% of RWA deposits are placed in lending agreements built in its ecosystem. Solana and Plasma are also catching up, but Ethereum's depth of liquidity still gives it a clear lead.

Crypto market shifts to hybrid finance

The rise of RWA does not mean the disappearance of DeFi. It more suggests that decentralized finance is changing its composition. The weight of pure crypto assets has declined, while bonds, gold, private credit and tokenized stocks have found new uses on the blockchain.

This integration may attract more institutions. Settlement speeds up, markets remain permanently open, and assets can be programmed or used as collateral. But RWA still has off-chain dependence: its value still depends on the issuer, custodian, legal documents, and the actual existence of the assets it represents.

Growth must therefore be accompanied by greater transparency. Investors must be able to verify reserves, rights attached to tokens, repayment conditions, and counterparty risk. An efficient blockchain does not automatically solve fragile legal structures.

The current trend is not so much a victory for RWA over DeFi as a reconfiguration of crypto capital. The recent contraction of stablecoins into tokenized treasury bonds products confirms this pursuit of returns. The $7.4 billion deposit shows that tokenization is gradually moving out of the commitment stage and becoming an active layer in the financial system.