DeFi lending rises 72% on institutional interest, RWA collateral adoption

1 day ago

DeFi lending is poised to seizure much organization involvement arsenic tokenized RWAs are progressively accepted arsenic collateral for stablecoin loans, according to Binance Research.

DeFi lending rises 72% connected organization interest, RWA collateral adoption

Decentralized lending protocols are surging successful full value, acceptable to further capitalize connected the increasing organization adoption of stablecoins and tokenized assets, according to Binance Research.

Decentralized concern (DeFi) lending protocols are automated systems that facilitate lending and borrowing for investors via astute contracts, eliminating the request for fiscal intermediaries specified arsenic banks.

DeFi lending protocols roseate implicit 72% year-to-date (YTD), from $53 cardinal astatine the opening of 2025 to scope implicit $127 cardinal successful cumulative full worth locked (TVL) connected Wednesday, according to Binance Research.

The explosive maturation is attributed to DeFi lending protocols benefiting from the accelerated organization adoption of stablecoins and tokenized real-world assets (RWAs).

“As stablecoin and tokenized plus adoption accelerates, DeFi lending protocols are progressively positioned to facilitate organization participation,” wrote Binance Research successful a Wednesday study shared exclusively with Cointelegraph.

A important information of this maturation was attributed to Maple Finance and Euler, which saw an explosive 586% and 1466% rise, respectively.

DeFi lending to seizure much organization information from RWA collateral adoption

Binance Research sees DeFi lending protocols arsenic increasing facilitators of organization participation, specifically owed to the motorboat of institutional-grade products, specified arsenic Aave Labs' Horizon.

Horizon is an organization lending marketplace that enables borrowers to usage tokenized RWAs arsenic collateral for stablecoin loans.

Products similar Horizon “aim to unlock caller liquidity and person RWAs into productive assets wrong the decentralized concern ecosystem,” added the report.

Tokenized fiscal products, specified arsenic backstage recognition and US Treasury bonds, became a focal constituent of involvement for institutions. Tokenized backstage recognition represents the majority, oregon $15.9 billion, of the full $27.8 cardinal RWAs onchain, followed by $7.4 cardinal worthy of US Treasuries, according to data from RWA.xyz.

Some RWA protocols alteration the usage of yield-bearing tokenized US Treasury products arsenic collateral for aggregate DeFi activities.

However, utilizing US Treasuries arsenic collateral for leveraged crypto trading created caller hazard transmission pathways crossed markets, specified arsenic cascading effects for DeFi protocols, according to a June study from standing work Moody’s.