Catenaa, Tuesday, January 28, 2025 – The total value locked (TVL) in real-world asset (RWA) protocols has surged to $7.3 billion, marking a 200% increase over the past year, with government securities now dominating the market.
These assets account for two-thirds of the sector’s TVL, up from 36% last year, signaling a shift toward regulated, lower-risk investments.
Usual Protocol and Hashnote USYC lead the sector with $1.48 billion in TVL each. Hashnote, a regulated asset management platform, offers innovative, transparent investment strategies, while Usual Protocol issues decentralized stablecoins backed by tokenized real-world assets.
The surge in government securities suggests growing confidence in regulated digital assets and a maturing market. This trend is further bolstered by potential U.S. policy changes, including a reported executive order by President Trump to prioritize crypto as a “national policy priority” and the creation of crypto advisory councils.
These developments are expected to enhance the legitimacy of RWA protocols, particularly those focusing on government securities. Analysts see the growth in TVL as a sign of increasing institutional acceptance of blockchain-based financial instruments, with a preference for stability in uncertain markets.
The evolving RWA landscape reflects the growing integration of blockchain technology into traditional finance, setting the stage for further expansion as policy clarity improves and institutional adoption accelerates.
