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a16z Crypto: Most tokenized assets are just digital representations; true on-chain composability has yet to be unlocked.

MeNews
ME News Report, May 27 (UTC+8), a16z crypto stated that not all tokenized assets are being fully utilized on the chain. Bonds are currently the largest category of tokenized assets, with a market value of $15.2 billion, but only about 5% of the supply is used in DeFi; precious metals are similar, although they are on-chain, most are idle. In contrast, smaller categories perform differently: reinsurance tokens have 84% of their supply deployed in DeFi, and private credit at 33%. a16z believes this makes sense because the categories with the highest DeFi usage were built for DeFi from the start, such as Nexus Mutual and Maple Finance. a16z pointed out that many practices currently called tokenization are actually closer to digitization, meaning recording on the blockchain without unlocking new functionalities, and one of the core value propositions of on-chain financial systems is composability. (Source: ChainCatcher)
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WaitingForConfirmationUnderThe
· 2h ago
A 5% utilization rate exposes a problem: traditional finance only wants to issue bonds on-chain and does not want to build an ecosystem.
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PaperSculptureOctopusPosition
· 3h ago
Institutions only come in wanting to issue bonds and not to play DeFi—so what’s the point of whether the chain is connected or not?
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Wb3_fish
· 8h ago
It's all zero-sum assets; only Bitcoin remains, the rest will eventually go to zero—harvesting the chives.
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OxRenWoXing
· 8h ago
ME News Report, May 27 (UTC+8), a16z crypto published an article pointing out that not all tokenized assets are being fully utilized on the chain. Bonds are currently the largest category of tokenized assets, with a market cap of $15.2 billion, but only about 5% of the supply is used in DeFi; precious metals are similar, although they are on-chain, most are idle.
In contrast, smaller categories perform differently: reinsurance tokens have 84% of their supply deployed in DeFi, and private credit at 33%. a16z believes this makes sense because the categories with the highest DeFi usage from the start were built specifically for DeFi, such as Nexus Mutual and Maple Finance.
a16z points out that many practices currently called tokenization are actually closer to digitization, meaning records are moved onto the blockchain but without unlocking many new features, and one of the core value propositions of on-chain financial systems is composability.
View OriginalReply0
ColdWalletFitnessCoach
· 9h ago
Reinsurance 84% utilization vs. bonds 5%, indicating that native DeFi design is the key
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QuietValidator
· 9h ago
Tokenization ≠ Digitalization; this phrase deserves to be printed on the homepage of all RWA projects.
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LiquidityLifeguard
· 9h ago
Nexus Mutual and Maple are indeed textbook case studies—only by being built for the right scenarios is there a viable path forward.
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OvernightPositionPhobia
· 9h ago
Precious metals are on the blockchain but lack liquidity.
What is the difference between that and gold bars in a vault?
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PlayfulAndCheerfulSunflower
· 9h ago
Currently, the RWA (Real-World Asset) track is overly inflated, and there are very few genuine DeFi integrations.
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AirdropTaxPanic
· 9h ago
Private credit at 33% is actually okay, at least more aware than those bond institutions.
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