RWA protocols have overtaken decentralized exchanges by total value locked, as tokenized Treasurys, private credit and commodities become core onchain building blocks.
Real-world asset (RWA) protocols are one of decentralized finance’s (DeFi’s) winners in 2025, overtaking decentralized exchanges (DEXs) to become the fifth-largest category by total value locked (TVL), according to DefiLlama.
RWAs now account for about $17 billion in TVL, up from $12 billion in Q4 2024, highlighting how quickly tokenized Treasurys, private credit and other real-world claims have moved from niche experiments to core DeFi plumbing. As DefiLlama noted, “At the start of this year, they weren’t even in the top 10 categories.”
Vincent Liu, chief investment officer at Kronos Research, told Cointelegraph that RWA growth is being driven by “balance-sheet incentives rather than experimentation,” with higher-for-longer rates making tokenized Treasurys and private credit attractive as onchain, yield-bearing assets, amid improving regulatory clarity that is lowering friction for institutional allocators.
