Over $18B of RWAs are tokenized on public blockchains, but only about $1.2B is actually used in DeFi as collateral, reserves, or vault inputs. Tokenization happened. Real integration mostly hasn’t.

Short-duration RWAs like Treasuries and money markets work because redemption is predictable and pricing is clear. Try the same with real estate or multi-year credit and liquidations become far harder.

If collateral cannot exit quickly, protocols respond with lower LTVs, isolated pools, and strict caps. RWAs already exist onchain, but most still don’t behave like DeFi-native collateral.