RWA Tokenization and DeFi: On-Chain Assets

RWA tokenization and DeFi are converging in practical ways, with tokenized US Treasuries used as collateral, tokenized funds feeding yield strategies, and private credit tokens being tested in on-chain finance. Depending on the tracker, tokenized real-world assets excluding stablecoins now sit at roughly $20-35 billion on-chain. While still small next to traditional capital markets, the sector gives DeFi access to assets with different risk profiles than ETH, BTC, and volatile governance tokens, and institutions are testing public and permissioned blockchain rails for settlement, collateral movement, and programmable liquidity.