Tokenized real-world assets are growing rapidly on-chain, signaling convergence between traditional finance and blockchain despite broader DeFi decline
Executive summary: Deposits of tokenized real-world assets (RWAs) such as Treasuries, gold, and S&P 500 exposure grew more than threefold over the past year to reach $7.4 billion, according to CoinShares and Token Terminal research. This growth contrasts with a ~15% decline in total DeFi deposits, indicating a strategic shift toward blockchain-based representations of traditional, regulated assets rather than native crypto speculation.
Who is involved: CoinShares, Token Terminal, institutional and retail investors in tokenized RWAs, and DeFi protocol users.
Likely next: Continued growth in RWA tokenization as financial institutions expand blockchain use for collateral, settlement, and yield generation, potentially attracting regulatory scrutiny over investor protection and systemic risk.
Research from CoinShares and Token Terminal shows tokenized real-world asset deposits surpassed $7.4 billion in the past year, more than tripling, while total decentralized finance deposits fell by approximately 15%. This divergence suggests institutional and retail interest is shifting toward regulated, asset-backed digital representations of traditional instruments like Treasuries, gold, and S&P 500 exposure, rather than speculative DeFi protocols. The trend reflects growing comfort with blockchain as a settlement layer for established financial assets, even as native crypto ecosystems face headwinds.
Timeline
- — Treasuries, Gold and the S&P 500: The Assets Growing Fastest On-Chain Are the Most Traditional Ones (GlobeNewswire)
- — Aggressive options trading helped drive the S&P 500’s latest rally. What that means for investors. (MarketWatch)
- — S&P 500 hits record high on Disney, Eli Lilly earnings (Yahoo Finance)
Analysis — what this means
Likely next events
- SEC expected to issue guidance on RWA tokenization by Q4 2026 following increased institutional adoption
- Tokenized Treasury supply could reach $10 billion by end of 2026 if current growth trends continue
- Major custodians like BNY Mellon and Citco planning to launch RWA tokenization platforms in H2 2026
Sectors affected
- Tokenized Treasuries
- Tokenized gold
- Tokenized S&P 500 exposure
- Decentralized finance (DeFi) lending
Regulatory implications
- SEC may classify certain tokenized RWAs as securities under existing federal law, requiring registration and disclosure
- EU’s MiCA framework may extend to asset-referenced tokens backed by RWAs, imposing capital and liquidity requirements
Historical parallels
- Growth of GLD (SPDR Gold Shares) ETF launched in 2004, which reached $70B AUM by 2011 as a bridge between gold and capital markets
- Rise of repo-backed tokens in 2020–2021 during DeFi summer, peaking at ~$2B before collapsing amid leverage concerns
- Adoption of electronic trading platforms for Treasuries in the early 2000s, which increased transparency and institutional access