Tokenised RWAs Reshape DeFi Lending as Deposits Surge

Tokenised real-world assets (RWAs) are reshaping DeFi lending as investors move toward yield-bearing, lower-volatility products. Between Q2 2025 and Q2 2026, total DeFi deposits fell about 15%, while RWA deposits more than tripled from $2.3 billion to $7.4 billion, according to CoinShares and Token Terminal. The growth was led by tokenised US Treasury funds, private credit and delta-neutral strategies. About 70% of RWA deposits are on Ethereum. Products including BlackRock’s BUIDL, Janus Henderson’s JTRSY and Sky’s sUSDS are increasingly used as collateral on Aave, Morpho and Kamino. Stablecoin supply remains above $300 billion, indicating that capital is being repositioned rather than leaving crypto entirely. Stablecoin yields range from about 3.2% to 5.5%. Tokenised Treasury products offer mid-3% yields with lower volatility and no direct smart-contract exposure. As borrowing demand weakens, DeFi lending rates can fall below government-bill yields while retaining protocol, credit and liquidation risks. More than $1.3 billion was reportedly lost to crypto hacks in the previous six months, adding to the risk premium. RWA deposits remain largely within DeFi, but they have not materially increased protocol revenue because crypto-native trading volumes remain the main source of fees. Aave’s Horizon uses KYC and whitelisted wallets, while transferable wrappers such as sUSDS, sUSDe and syrupUSDC provide broader access but raise regulatory and liquidation concerns. For traders, the short-term impact is neutral. The RWA trend could support Ethereum and DeFi collateral demand over the long term, but it also signals weaker appetite for leveraged crypto-native lending. Federal Reserve policy remains important: higher rates could lift on-chain benchmark yields without restoring DeFi borrowing demand.