Tokenized real-world assets (RWAs) have surpassed $25 billion in onchain value, marking a significant increase from $6.4 billion a year ago, according to RWA.xyz. This growth is driven by institutional adoption, with asset managers like BlackRock, Fidelity, and WisdomTree launching tokenized fund products. Six asset classes, including U.S. Treasuries and commodities, now exceed $1 billion onchain. Despite the surge in tokenized asset supply, only 12% of RWA-backed stablecoins are utilized in DeFi protocols, with the rest constrained by compliance requirements such as KYC checks. Nexus Data Labs reports that $8.49 billion in RWA-backed stablecoins exist, but only $1 billion is deployed in DeFi. The future of tokenization hinges on whether these assets can integrate with DeFi systems or remain in permissioned structures.