**RWAs DeFi TVL Surges to $17 Billion, Overtaking DEXs to Rank Fifth Largest Sector**
Real-world assets (RWAs) in DeFi have witnessed a dramatic rise in total value locked (TVL), soaring to $17 billion as of December 2025, according to DefiLlama. This surge propels RWAs ahead of decentralized exchanges (DEXs) and secures their position as the fifth-largest DeFi category, trailing only lending, liquid staking, bridging, and restaking.
At the start of 2025, RWAs were outside the top 10 DeFi sectors by TVL, with just $12 billion recorded in Q4 2024. The impressive growth underscores the increasing institutional interest and marks a significant shift in the DeFi landscape.
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### How Have RWAs Become the Fifth-Largest DeFi Category?
The ascent of RWAs is largely driven by a convergence of traditional finance (TradFi) assets with blockchain infrastructure. This fusion has unlocked billions of dollars in locked value and transformed RWAs from experimental tokens into fundamental components of the DeFi ecosystem.
The rise coincides with broader macroeconomic factors, notably higher-for-longer interest rates, which have made tokenized assets highly attractive. Amid volatile native crypto tokens like Bitcoin (BTC) and Ethereum (ETH), investors are seeking stable, yield-generating alternatives that deliver practical, on-chain returns.
DefiLlama and industry analysts highlight RWAs as one of the most resilient and bright spots in the 2025 DeFi space.
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### Key Drivers of RWAs DeFi TVL Growth in 2025
Vincent Liu, Chief Investment Officer at Kronos Research, attributes the explosive growth of RWAs to balance-sheet incentives rather than experimentation alone. Several factors have contributed:
– **Attractive Yield Opportunities:** Higher interest rates have propelled tokenized US Treasurys and private credit products to the forefront as yield-bearing instruments on-chain.
– **Regulatory Clarity:** Evolving regulations have reduced entry barriers for institutional investors, enabling smoother capital inflows into RWA protocols.
– **Flagship Tokenized Products:** Tokenized US Treasurys act as gateway assets. Platforms like BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) have helped push the combined tokenized Treasury market beyond several billion dollars by year-end 2025.
Mr. Liu notes that tokenization challenges have largely been addressed. The focus now shifts toward enhancing liquidity, collateral deployment, and strengthening bridges between TradFi and crypto markets.
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### The Role of Tokenized Commodities and Private Credit
Tokenized commodities have also been significant contributors to the RWA TVL expansion. Price rallies in gold and silver—fueled by inflation fears and currency concerns—have driven capital into digital gold products such as Tether Gold and Paxos Gold.
DefiLlama data reveals that tokenized commodities are approaching a $4 billion market cap, evolving from niche offerings into macro assets characterized by robust demand, transparent pricing, and seamless DeFi integration.
Interoperability remains a critical driver. Liu predicts that true momentum will emerge as tokenized RWAs achieve frictionless cross-chain movement and broader venue access, enhancing their utility further.
Private credit protocols mirror this growth trend, offering institutional-grade yields tokenized on blockchain networks. This further strengthens TVL inflows and underscores the maturation of the RWA sector.
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### Frequently Asked Questions
**What is the current RWAs DeFi TVL and its ranking among sectors?**
As of December 2025, RWAs DeFi TVL stands at $17 billion, making it the fifth-largest DeFi category, ahead of decentralized exchanges (DEXs). It trails lending, liquid staking, bridging, and restaking according to DefiLlama.
**Why are tokenized Treasurys leading the RWAs TVL surge?**
Tokenized Treasurys benefit from regulatory advancements that lower entry barriers, positioning them as preferred gateway assets. Ongoing improvements in liquidity and TradFi-to-crypto integration support broader deployment.
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### Key Takeaways
– **RWAs Enter the Top 5 DeFi TVL Spot:** Total value locked hits $17 billion, surpassing DEXs and signaling a shift from speculative trading towards institutional yield strategies.
– **Tokenized Treasurys Dominate Growth:** These gateway assets exceed billions in value, spurred by platforms like BlackRock’s BUIDL amid a sustained higher interest rate environment.
– **Commodities Amplify Expansion:** Gold and silver tokens near a $4 billion market cap, with future growth hinging on improved liquidity and cross-chain interoperability into 2026.
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### Conclusion
The rise of real-world assets in DeFi has redefined sector hierarchies, with TVL hitting $17 billion and claiming the fifth-largest position behind key sectors per DefiLlama’s data. Insights from Vincent Liu of Kronos Research highlight a maturing ecosystem focusing on liquidity, collateralization, and seamless integration between TradFi and blockchain.
As 2026 approaches, market participants should watch for developments in collateral usage and secondary markets, which will be pivotal in sustaining and expanding the dominance of RWAs in DeFi ecosystems.
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*DeFi sectors by total value locked. Source: DefiLlama (X/Twitter).*
https://bitcoinethereumnews.com/bitcoin/rwas-surpass-dexs-for-fifth-in-defi-tvl-as-bitcoin-relinquishes-gains/