DeFi Market Sees Limited Integration Despite Significant On-Chain Value

CoinLive
2026.05.18 17:08
According to NS3.AI, recent data from DefiLlama indicates that the on-chain Real World Asset (RWA) market is valued at nearly $30 billion. However, only $2.47 billion of this is reflected as active Total Value Locked (TVL) in decentralized finance (DeFi). Bond and money market funds represent over $16.6 billion on-chain, yet merely $920 million is actively engaged in DeFi. Notably, private credit exhibits the highest DeFi penetration at 39%. IOSCO and RedStone have highlighted that compliance restrictions, transfer controls, and investor allowlists are hindering the full integration of open DeFi systems.