Real World Assets represent DeFi’s most significant market expansion, bringing traditional finance instruments onto blockchain rails with billions already tokenized.
Treasury Tokenization
US Treasury tokenization has emerged as RWA’s breakout category. Ondo’s OUSG, Mountain’s USDM, and Backed Finance products provide on-chain access to the risk-free rate—compelling alternatives to volatile DeFi yields.
Private Credit
Protocols like Goldfinch, Maple, and Centrifuge extend DeFi capital to real-world borrowers. Early challenges have driven improved underwriting and risk management in current implementations.
Integration Challenges
RWA tokens often have transfer restrictions preventing permissionless DeFi integration. Redemption mechanics, audit requirements, and regulatory compliance add complexity beyond native crypto assets.
For DeFi participants, RWAs offer stable yields uncorrelated with crypto volatility—but require traditional finance due diligence alongside smart contract evaluation.