Why 89% of tokenized RWAs remain idle despite a $34.6 billion market: Falcon exec explains

The tokenized real-world asset market has reached $34.6 billion onchain, but only $3.79 billion has been deployed in protocols, leaving about 89% of issued value idle. Summary Roughly 11% of the $34.6 billion tokenized RWA market is deployed in protocols. BlackRock’s BUIDL, Franklin Templeton’s BENJI and Circle’s USYC all have utilization below 1%. JAAA and reUSD have utilization rates above 97%, according to DeFiLlama. Falcon Finance examines legal claims, redemptions, liquidity, pricing, and credit quality before accepting RWA collateral. DefiLlama data shows a sharp difference between the value of tokenized assets issued onchain and the amount being used inside decentralized finance protocols. BlackRock’s BUIDL has a utilization rate of 0.64%, while Franklin Templeton’s BENJI stands at 0% and Circle’s USYC at 0.52%, according to the platform. Each product gives holders exposure to yield-bearing assets, but little of their issued value has moved into the protocols covered by DefiLlama’s utilization measure. Products created for use as collateral show a different pattern. Centrifuge’s tokenized Janus Henderson Anemoy AAA CLO Fund, known as JAAA, has reached 97.97% utilization, whi...