Why 89% of tokenized RWAs remain idle despite a $34.6 billion market: Falcon exec explains

The tokenized real-world asset market has reached $34.6 billion onchain, but only $3.79 billion has been deployed in protocols, leaving about 89% of issued value idle. DefiLlama data shows a sharp difference between the value of tokenized assets issued onchain…

• The tokenized real-world asset (RWA) market has reached $34.6 billion, but only 11% is actively deployed in DeFi protocols, indicating significant idle value.
• Major RWA products like BlackRock's BUIDL and Franklin Templeton's BENJI show very low utilization, while assets designed specifically for collateral, such as JAAA and reUSD, exhibit high utilization rates.
• Falcon Finance emphasizes a multi-faceted approach to assessing RWA collateral, considering legal claims, redemption terms, secondary market liquidity, price feeds, and credit quality, highlighting the complexity beyond simple utilization metrics.

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

Tags: #tokenizedrwa #utilizationrate #falconfinance #collateral #defiprotocols #blackrockbuidl #franklintempletonbenji #circleusyc #jaaa #reusd

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