DeFi TVL share of real-world asset (RWA) protocols doubles since July

Real-world asset (RWA) protocols now account for 3.69% of total value locked (TVL) in decentralized finance (DeFi).

According to the latest findings from on-chain analytics platform IntoTheBlock, this is a notable increase from 1.77% in July.

RWA protocols expand presence in DeFi

The steady growth essentially highlights the growing integration of real-world assets (RWAs) within the DeFi ecosystem, as traditional assets such as real estate, commodities and bonds are increasingly being converted and used as guarantee in loan protocols and decentralized loans.

ITB’s tweet read,

“Real World Asset (RWA) protocols now account for 3.69% of DeFi TVL, a significant increase from 1.77% in July. This steady upward trend shows the growing integration of real-world assets within the DeFi ecosystem.”

CoinGecko also noted that a recent analysis predicted that the RWA market will grow from $118 billion to $10 trillion by 2030.

With clearer regulations and growing interest from institutional investors, RWA tokenization is expected to unlock liquidity for private equity, real estate and other viable assets, according to the prominent crypto data aggregator.

Ripple and MANTRA lead tokenization efforts

Despite initial skepticism, the tokenization of RWAs has seen significant growth in recent years, attracting interest from both individual and institutional actors. For example, blockchain company Ripple partnered with the Axelar Foundation in February of this year to increase the interoperability of the XRP Ledger (XRPL), with a strong emphasis on promoting RWA tokenization.

By integrating Axelar’s network, the collaboration aims to strengthen the XRPL DeFi ecosystem by providing essential liquidity for stablecoins and other high-value assets.

MANTRA, a Layer 1 blockchain specializing in real-world assets (RWA), received $11 million in a funding round in March, which was aimed at accelerating its mission of scalable RWA tokenization.

The fresh capital will go towards key initiatives such as establishing regulatory-compliant infrastructure aligned with global standards, equipping developers with tools to build RWA-centric protocols on the MANTRA chain, and expanding tokenization efforts in marketplaces from MENA and Asia.

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