Tokenization Isn't Enough: DeFi-Native RWAs Bring Assets to Life

Tokenization has become a buzzword in the financial and crypto spaces, but it's not enough. The goal should be to connect tokenized assets to usable financial infrastructure, making them useful in applications like borrowing, trading, and investment strategies.

This requires infrastructure that connects an asset's actual behavior to the promises a financial protocol makes. For example, if you tokenize a private-credit fund with loans earning interest, a smart contract can be deployed, but it won't persuade borrowers to repay faster.

Tokenization needs to graduate from recording assets on-chain to making them useful in financial applications. This is where DeFi-Native RWAs come in, real-world asset exposures designed or adapted to support borrowing, trading, and investment strategies.