Aave Crosses $1B in RWAs as Capital Rotates From DeFi to Tokenized Assets

Lending protocol, Aave, has recently seen deposited Real World Assets (RWA) on its platform surpass over $1 billion. This reiterates the growing trend of capital being shifted more from DeFi to tokenized assets.

Aave Sees $1B in RWA Deposits Amid Capital Rotation

In a new post, the lending platform revealed that it has a cumulative total of $1 billion in Real World Assets. With its market, Aave Horizon, the protocol introduced tokenized RWA and reached $600 million in deposits by January 2026.

In less than a month, the platform was able to double the deposits, with active and on-chain RWA totaling $527 million.

This comes as tokenization platforms continue to see a new trend of capital shifted to their platform. For context, the TVL in DeFi has fallen 25% in the last month to $95 billion, as per DeFi Llama data.

This is because almost all the major protocols, such as Aave, Binance Staked ETH, and others have registered double-digit declines in the last 30 days.

The RWA sector, on the other hand, saw a growth of 8.68% in the value of distributed assets for the last month. It reached $25 billion, as per RWA.xyz. The represented asset value, which tracks the tokenized assets that cannot be moved from one wallet to another or from the platform, remained flat with just a 0.51% increase to $372.97 billion.

In contrast to the declining TVL in DeFi, the distributed value of tokenized real-world assets, excluding stablecoins, has been growing steadily across various sectors as highlighted in Aave’s growth.

Tokenized U.S. Treasury debt, commodities, and private credit with $10.7 billion, $6.9 billion, and $2.9 billion in distributed value are up 10%, 20%, and 15%, respectively, over the last month.

NYSE Says Tokenization Offering Now Pivotal

Recently, Lynn Martin, the President of the New York Stock Exchange (NYSE), stated that she felt a “responsibility” to become involved in tokenization.

This is in light of the NYSE’s plans to roll out a blockchain-based platform later this year, which will allow for the 24/7 trading of tokenized stocks and ETFs, provided that the relevant authorities give their approval, which will deviate from its current 6.5-hour, five-day-a-week trading schedule. Aave’s new record only highlights the dire need for these offerings.

More institutions are now tapping into RWA tokenization daily. Securitize recently highlighted on X the growing capital in this market.