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Most Tokenized Assets Are Onchain but Not Really in Use: a16z Crypto

Key Highlights

  • a16z Crypto said most tokenized assets like bonds and metals are onchain but barely used in DeFi, with bonds only about 5% active.
  • Smaller sectors like reinsurance (84%) and private credit (33%) are much more active because they were built for DeFi use.
  • The market has grown to about $34.11B, but it remains far below forecasts of $500B by 2026 and $11T by 2030.

Just because a lot of assets are represented as tokens on the blockchain doesn’t mean they’re actually being used, says a16z Crypto, a venture capital firm.

The company noted in a recent post on X that even with the growing popularity of tokenized real-world assets (RWAs), many of the biggest collections of these tokens aren’t being actively used.

Not all digital representations of assets are equally integrated with blockchain technology. While tokenized bonds currently represent the largest segment, with a market value of $15.2 billion, only a small portion (around 5%) is actively used within decentralized finance (DeFi). A similar pattern exists with tokenized precious metals – they’re recorded on the blockchain, but largely remain inactive. Smaller…

— a16z crypto (@a16zcrypto) May 26, 2026

Most tokenized assets are not being used

Tokenized bonds currently represent the biggest type of asset in the crypto market, totaling around $15.2 billion. However, only a small fraction – about 5% – is actually being used within decentralized finance (DeFi) applications.

The company also observed that digital versions of precious metals are behaving similarly. While these tokens exist on the blockchain, most aren’t currently being actively used in decentralized finance – things like lending, trading, or borrowing.

Smaller sectors show stronger DeFi activity

According to a16z Crypto, most reinsurance tokens (around 84% of the total supply) are currently being used in decentralized finance (DeFi). In contrast, only about 33% of private credit assets are being used in DeFi. The firm believes this isn’t a coincidence, as some of these asset types were specifically designed to work with DeFi from the start.

According to a16z Crypto, the DeFi applications seeing the most activity were designed with decentralized finance in mind from the beginning, like Nexus Mutual and Maple Finance.

The company believes that a lot of what people are calling ‘tokenization’ is really just putting records and assets onto blockchains without adding any new capabilities. They argue it’s more like simple digitization than true tokenization.

As explained by a16z Crypto, a key benefit of blockchain technology for finance is “composability.” This means digital assets should easily work with other applications, tools, and financial services directly on the blockchain.

Tokenized assets hit $34 billion in value

Even with some worries about how they’re used, the market for tokenized assets is still growing. Currently, it holds around $34.11 billion in value, according to data from RWA.xyz.

The blockchain sector boasts nearly 820,000 investors. Stablecoins continue to be a significant component of this economy, currently valued at approximately $304.43 billion and held by over 258 million people.

Despite these recent gains, the market hasn’t yet reached the levels some experts predicted. For example, a 2025 report by 21Shares, a crypto ETP provider based in Switzerland, estimated that tokenized assets could reach $500 billion by 2026, and stablecoins could exceed $1 trillion in value by that same year.

The company highlighted the rapid increase in value of real-world assets represented as tokens – like properties or commodities – as a key trend for the crypto market this year. They also noted that new investment money flowing into the market will be a significant factor.

As an analyst, I’ve been following Ark Invest’s projections closely. Earlier this year, Cathie Wood’s firm predicted that tokenized assets could reach over $11 trillion by 2030 – a very ambitious forecast. While I see significant potential in this space, it’s important to remember that the market still has a considerable distance to travel before realizing that level of growth.

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2026-05-26 23:17