The $30 Billion Gap: Why Most Tokenized Real-World Assets Sit Idle

According to data from DeFiLlama, high-profile products like BlackRock’s BUIDL and Franklin Templeton’s BENJI show utilization rates below 1%. This has led to concerns about adoption, yet industry experts argue that these metrics paint an incomplete picture. Artem Tolkachev, chief RWA officer at Falcon Finance, emphasizes that many of these tokens are purchased for yield and cash management rather than to serve as collateral in lending pools. An underlying fund that functions as a stable yield-bearing investment is fulfilling its purpose even when its protocol utilization remains at zero.

However, a clear divide exists between yield-focused funds and assets specifically engineered for DeFi. Tokens like JAAA and reUSD maintain utilization rates near 98%, proving that when assets are built and priced for borrowing, demand is robust. The friction arises because traditional securities—such as U.S. Treasuries or corporate credit—operate on limited trading schedules, creating a mismatch with the 24/7 nature of blockchain lending. Protocols struggle to price these assets during market closures, forcing firms like Falcon Finance to implement rigorous underwriting tests. These include evaluating legal bankruptcy-remote structures, redemption liquidity, and the ability to liquidate collateral under stressed market conditions. Until the industry establishes common standards for legal claims and reliable price feeds, the capacity to integrate complex real-world assets into DeFi will remain concentrated among a few specialized venues.