Decentralized finance, or DeFi, is reshaping how we invest and manage money by using blockchain technology to let people borrow, lend, and trade without relying on traditional banks. A key measure in DeFi is Total Value Locked (TVL), which shows the total amount of assets deposited in a platform-imagine it as the combined savings of all users in one big digital piggy bank. Recently, the TVL in real-world assets (RWAs) hit an impressive $10 billion.
What Are Real-World Assets (RWAs)?
Real-World Assets (RWAs) are physical or traditional items such as real estate, art, or even gold that are converted into digital tokens through a process called tokenization. For example, instead of needing millions to buy a whole building, tokenization lets you own a small share, much like purchasing a few stocks in a big company. This approach opens up investment opportunities to a broader range of people, making high-value assets accessible even to those with smaller budgets.
According to the HTX Ventures Report, stablecoins work closely with RWAs to ensure liquidity (easy buying and selling) and stability in the market.
eThe total Total Value Locked (TVL) across these networks stands at $10.218 billion, with Ethereum holding the majority at $8.133 billion, far surpassing all other networks. Base follows with $210.07 million, while Arbitrum and Solana are close behind with $162.85 million and $160.91 million, respectively. Tron maintains a presence with $54.7 million, and Binance Smart Chain (BSC) holds $41.22 million in TVL.
These figures, available on DefiLlama, indicate that both established financial institutions and innovative new projects are increasingly embracing the tokenization of traditional assets.
The rise of RWAs in DeFi is a clear sign that traditional finance is merging with the digital world. With major institutions like BlackRock showing strong growth in this space, the blend of traditional assets and blockchain technology is paving the way for innovative financial products and more secure investments.
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