Key Highlights
- a16z Crypto said most tokenized assets like bonds and metals are onchain but barely used in DeFi, with bonds only about 5% active.
- Smaller sectors like reinsurance (84%) and private credit (33%) are much more active because they were built for DeFi use.
- The market has grown to about $34.11B, but it remains far below forecasts of $500B by 2026 and $11T by 2030.
Many tokenized assets may be on the blockchain, but that does not mean they are actively being used, according to venture capital firm a16z Crypto.
In a post on X on Tuesday, the firm said some of the largest tokenized asset groups are still mostly sitting idle despite continued growth in the tokenized real-world asset (RWA) market.
Most tokenized assets are not being used
According to a16z Crypto, tokenized bonds are the largest asset category in the market, with about $15.2 billion in value. Yet only around 5% of that supply is currently being used in DeFi applications.
The firm stated that tokenized precious metals show a similar trend. They are onchain, but most of their supply is not being used for lending, trading, borrowing, or other DeFi activities.
Smaller sectors show stronger DeFi activity
Meanwhile, a16z Crypto said that reinsurance tokens have about 84% of their supply deployed in DeFi, while private credit assets have around 33% in use. The firm said this difference is not random because some sectors were created with DeFi use in mind from the beginning.
“The categories with the highest DeFi usage were built for DeFi from the start,” a16z Crypto said, pointing to crypto-native protocols such as Nexus Mutual and Maple Finance.
The company argued that much of what is described as tokenization today looks closer to simple digitization. In other words, records and assets are being moved onto blockchains, but many are not gaining extra functions.
According to a16z Crypto, this matters because one of the main promises of blockchain finance is “composability,” meaning assets should be able to connect with other apps, tools, and financial products onchain.
Tokenized assets hit $34 billion in value
Despite concerns around usage, the broader tokenized asset market continues to expand. According to data from RWA.xyz, the market now holds about $34.11 billion in distributed asset value.
The sector also has close to 820,000 asset holders, with stablecoin remaining a major part of the blockchain economy, with total stablecoin value reaching about $304.43 billion and more than 258 million holders.
Even with these numbers, the market is still far below some industry forecasts. For instance, in its 2025 State of Crypto report, Switzerland-based crypto ETP provider 21Shares said tokenized assets could grow to $500 billion by 2026. The firm also predicted that stablecoins could pass $1 trillion in value by the same year.
The firm mentioned the fast growth of tokenized real-world assets as one of the trends that could shape the crypto space this year, along with new capital entering the market.
Earlier this year, investment firm Ark Invest, led by Cathie Wood, made an even larger forecast. The firm said tokenized assets could grow past $11 trillion by 2030. However, this sector still has a long way to go before reaching these numbers.
Also Read: BlackRock Tokenized Treasury Filings 2026: The RWA Boom Goes Institutional
