Real world assets (RWAs) are breathing fresh air into the decentralized finance (DeFi) ecosystem, providing it with a dose of stability and liquidity. Indeed, investors have dumped more than $20 billion into these eye-popping assets. They range from tokenized US Treasuries and real estate to gold and other commodities. This influx is world-enriching the DeFi landscape and making way for broader adoption of DeFi.

The total value of all tokenized RWAs hit an all-time high of over $20 billion on April 11. January 1 to April 18, 2025 Inclusive Only, the DeFi RWA market experienced an absolutely remarkable growth rate of 43%. This monumental expansion injected a jaw-dropping $3.4 billion into the DeFi ecosystem. Since January 1, 2023, the value of tokenized RWAs locked in DeFi protocols has increased significantly. It has climbed from $10.5 billion to a record-breaking $11.3 billion.

RWAs are starting to become an important piece of the puzzle for stabilizing crypto portfolios, commonly known for their volatility. Unlike complex DeFi products, assets like US Treasuries, real estate, and gold are more easily understood by a wider audience. This accessibility, combined with their natural stability, makes RWAs an appealing prospect for investors looking to diversify risk.

US Treasuries are becoming one of the hottest varieties of RWAs being adopted by crypto companies. Gold is the most prominent, desirable real-world asset (RWAs). In the last five years, the price of gold has shot up from $1,688 to $3,315 per troy ounce—a remarkable 96% increase. At present, BUIDL is the largest tokenized RWA fund, with a total value locked (TVL) of nearly $2.4 billion.

During the DeFi boom of 2021, this led to a staggering $161.4 billion flowing into DeFi protocols. This diabolic increase pushed the total value locked (TVL) up to a maximum of $176.7 billion. The second pulse caused a huge release. Shortly after on July 1, 2022, $125.2 billion had departed DeFi and the overall TVL fell to $51.45 billion. RWAs provide a bridge. RWAs are the answer, allowing crypto natives to reduce volatility and keep stable investments inside the DeFi ecosystem.

Our members Ethena, Tether and Sky DAO have all recently made ambitious moves onto RWAs. They are especially looking to US Treasuries as a way to back their stablecoins. This well-calibrated strategic move increases the overall stability of these new stablecoins. It furthers the incorporation of real-world assets (RWAs) into the DeFi ecosystem.