The evolution of RWA in 2025: funds flowing from tokenized government bonds to private sale credit, becoming a new pillar of DeFi returns.

In 2025, real-world assets (RWA) have evolved from an emerging concept to a core component of Decentralized Finance (DeFi). The total value of on-chain tokenized assets has risen to approximately $30.26 billion. The flow of market funds shows a clear shift from low-risk assets like tokenized government bonds (around $7.3 billion) to high-yield products such as private credit (approximately $15.9 billion). This trend indicates that crypto investors are seeking higher real returns, transforming RWA from simple digital copies into composable building blocks of the DeFi ecosystem.

Overview of RWA in 2025: From Concept to Core

If 2023 to 2024 is the period when tokenization of government bonds plays the role of "Phase One", then 2025 marks a clear shift, where capital is gradually flowing into private sale credit and other higher yield products.

In 2025, on-chain capital is no longer limited to stablecoins and staking. A new asset class—real world assets (RWA)—has become the focus as crypto investors seek to gain returns from traditional financial instruments "wrapped" in token form.

According to Dune Analytics and the RWA 2025 report, the total value of tokenized assets continues to rise strongly, reaching approximately $30.26 billion. Among them, U.S. Treasury bonds are the fastest-growing submarket, with a scale of about $7.3 billion, led by products like BlackRock (BUIDL) and Franklin (BENJI). This is seen as "market proof" that tokenization is really working.

(Tokenization of US Treasury Bonds Value | Source: RWA.xyz)

At the same time, private sale credit is becoming the next key sector, with a total value of approximately $15.9 billion, far exceeding government bonds. Platforms like Maple Finance and Centrifuge are leading this trend by bringing off-chain credit into DeFi through permissionless or semi-permissioned pools.

The report also emphasizes that the composability of RWA in DeFi is increasingly enhanced: they are not only used as collateral on Aave (AAVE) but are also integrated into AMMs (automated market makers) or structured vaults. This transforms RWA from mere digital replicas into actual building blocks of DeFi.

"The adoption of RWA is surpassing the vanity TVL (Total Value Locked) data concentrated in a few wallets. Real progress comes from active users holding and using assets on-chain, making them liquid, composable, and a part of Decentralized Finance," said Chris Yin, CEO and co-founder of Plume Network, in the report.

Capital flow: Rising along the yield curve

The most interesting aspect of the RWA field is that capital is steadily climbing the yield curve. This journey is divided into three key stages:

Phase One: Government Bonds. At this stage, crypto investors, for reasons of security, turn to tokenized government bonds to obtain "risk-adjusted returns with institutional credibility" (around 4%-5%) and stable liquidity.

Phase Two: Private Sale Credit. After becoming familiar with the yield on government bonds, capital begins to flow into the private sale credit pool. Unlike the previous yield of 4%-5%, the yields in this sector can reach as high as 10%-16%. However, it comes with risks such as defaults, counterparty concentration, and regulatory risks.

Phase Three: Structured Credit and Equity. This is the "next frontier," which includes tokenization funds, buyback vaults, and even tokenized stocks. Although the scale is still small, these products open the door to bringing the entire traditional capital market on-chain, turning DeFi into a launchpad for all types of returns.

Centrifuge Chief Operating Officer Jürgen Blumberg stated: "We started with government bonds as a safe haven, followed by CLOs (Collateralized Loan Obligations), which offer higher yields and acceptable risk conditions. The demand we hear from investors is clear: they want real-world asset products to provide higher returns, and we are responding to that."

Opportunities and Risks Coexist

With the current pace of development, DeFi is gaining real sources of yield, achieving diversification beyond native crypto assets. RWA enables cryptocurrencies to connect directly with global capital flows, while paving the way for major financial institutions to join on-chain.

Of course, there are many risks in the market, such as not all RWA products can be immediately redeemed for cash or USDC, which brings liquidity risk. In addition, there are many different RWA products in the market, each with its unique legal structure, which increases complexity and potential legal risks, especially default risk.

Conclusion

In 2025, Real World Assets (RWA) are no longer a niche segment; they are becoming a new pillar of DeFi yields. If stablecoins once unlocked on-chain liquidity, now RWA—especially government bonds and private credit—are unlocking the entire traditional capital market. The story of "climbing the yield curve" does not stop at Treasury bills but will continue to expand into structured credit, equities, and broader areas, ultimately blurring the lines between traditional finance and decentralized finance.