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      Tokenized Credit Dominates Real-World Asset Lending in DeFi, Report Finds

      A recent report by Dune Analytics reveals that credit products constitute 76% of all real-world asset (RWA) deposits in decentralized finance (DeFi) lending protocols, amounting to approximately $1.61 billion. This significant figure positions tokenized credit as the leading form of RWA collateral on-chain, far surpassing other asset types.

      The broader tokenized RWA market has reached an estimated $34.5 billion, reflecting a year-over-year growth of over 140%. While cash equivalents make up about half of this market at $17.8 billion, they remain largely inactive, with limited trading or lending activity. In contrast, tokenized credit, valued at $7.8 billion, has shown a more dynamic presence in DeFi, with a year-over-year increase of 111%.

      The report highlights that the lending activity is concentrated among a few platforms, with Morpho, Kamino, and Aave accounting for 83% of RWA lending. Despite the substantial amount of tokenized credit available, only 6.1% of the total supply is currently deployed in lending protocols. This limited deployment is attributed to the permissioned nature of many offerings, which restricts access and liquidity in the secondary market. As the DeFi landscape evolves, the reliance on private credit and the concentration of lending activity could pose risks, particularly during market downturns.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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