Why 89% of tokenized RWAs remain idle in a $34.6B market

Falcon executive Artem Tolkachev explains why 89% of the $34.6 billion tokenized RWA market remains idle and what limits collateral use.

• A significant portion (89%) of the $34.6 billion tokenized RWA market remains idle, with low utilization rates for major products like BlackRock's BUIDL and Franklin Templeton's BENJI.
• This idleness is attributed to various factors including the intended use of the asset (yield vs. collateral), incomplete utilization metrics, and challenges in pricing traditional assets with closed market hours.
• Falcon Finance's rigorous five-test underwriting process, focusing on legal claims, redemption terms, secondary liquidity, price feeds, and credit quality, highlights the complexity and concentrated expertise required for RWA collateral.

Topics: Asset types, Scalability, Integration with defi, Financial instruments, Market depth liquidity, Rwa collateral lending

Tags: #tokenizedrwa #idleassets #utilizationrate #falconfinance #collateral #defiprotocols #underwriting #liquidationrisk #pricefeeds #centrifuge

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