Real-world asset (RWA) protocols’ total value locked has surged to $7.3 billion, with government securities now making up two-thirds of the market. Usual Protocol and Hashnote USYC lead the sector, each holding $1.48 billion in TVL.
With government securities protocols gaining market dominance, the total value locked across real-world-asset (RWA) protocols has increased by more than 200% to $7.3 billion from a year earlier. The industry leaders, Usual Protocol and Hashnote USYC, each have over $1.48 billion TVL.
While Usual Protocol is a decentralized stablecoin issuer that tokenizes real-world assets and redistributes value to users through governance tokens, Hashnote is a regulated digital asset management platform that offers creative investment methods with transparency.
Government securities now make up around two-thirds of RWA TVL, up from 36% a year ago, reflecting a major shift in the composition of RWA TVL.
This change points to a maturing sector as protocols concentrate on conventional financial products and reflects growing trust in regulated, government-backed digital assets.
President Trump is reportedly planning to sign an executive order making cryptocurrency a “national policy priority” after his inauguration, which might have an impact on market dynamics.
Additionally, there have been plans to establish advisory committees for cryptocurrency, which would give the sector more influence over regulatory decisions.
These advancements have the potential to strengthen the legitimacy of RWA procedures, especially those pertaining to government securities.
Given that the significant increase in TVL indicates increased institutional acceptance of blockchain-based financial instruments, the sector’s growth trajectory merits attention. The current market’s preference for lower-risk, regulated assets may be seen by the heavy emphasis on government securities.