On-Chain Real-World Assets and the Growth of Yield-Bearing Tokens

Summary

This report surveys the expansion of non-stablecoin real-world assets represented on-chain in 2023, focusing on private credit, real estate, and Treasuries or other bonds. It attributes rising demand to higher traditional interest rates and weaker crypto-native yield opportunities, which made off-chain income more attractive to crypto users. It also describes the roles of issuers that acquire, tokenize, and distribute claims on real-world assets.

The report compares category growth and discusses yield differences, including a reported spread between private credit tokens and stablecoin supply rates on major DeFi lending platforms. It cautions that tokenized private credit can involve loans that are not overcollateralized, unlike many DeFi loans, and notes that the overall RWA market remained below its prior peak. Stablecoins are excluded from its market size calculations, and the analysis covers tokenized asset values rather than the underlying protocols or supporting services. The figures are a historical snapshot, not evidence of future returns.

Key ideas

• Higher traditional yields and weaker crypto-native yields helped increase demand for tokenized real-world income sources.
• The report covers three main yield-bearing RWA categories: private credit, real estate, and Treasuries or other bonds.
• Issuers connect off-chain assets to blockchain users by acquiring assets, tokenizing them, and distributing tokens.
• Tokenized private credit may carry greater credit risk because underlying loans may not be overcollateralized.
• The analysis excludes stablecoins and focuses on market capitalization rather than protocol infrastructure.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.