Tokenized real-world assets (RWA) have reached a total of $27 billion in assets under management (AUM), with $2.7 billion actively deployed in decentralized finance (DeFi) lending markets. This represents a significant increase in the use of RWAs as collateral, vault deposits, and yield strategies within DeFi. The growth has been driven by regulatory milestones, including the GENIUS Act and SEC approvals, which have accelerated tokenization efforts. Despite the impressive AUM figures, only a fraction of these assets are utilized in DeFi. Credit assets dominate DeFi deposits, accounting for 80% of the total, while U.S. Treasuries, which make up 48.5% of tokenized AUM, represent just 2% of DeFi deposits. Platforms like Morpho, Aave, Kamino, and Fluid are key players in this space, with Morpho holding $957 million in RWAs. The composability of tokenized assets allows for diverse yield strategies, with credit assets offering higher yields than traditional Treasuries, thus driving their popularity in DeFi lending.