A good percentage of RWA tokens and assets are being used like a photocopy of the real thing. You hold them to prove you own the asset, not to do anything with it. Which means most of that value just sits there; onchain gold lending is still under 1 in 500 dollars of what's been tokenized. BlackRock mints a token, Franklin mints a token, TVL climbs, and the asset just sits in a wallet, doing less than the paper version could. Flip that, and the token stops being a certificate and starts being a tool: something you can borrow against, trade on, or stack yield through, all without ever selling it. Two things kept this from happening sooner: ▫️ Nobody had settled who's on the hook when RWA collateral needs liquidating, since it can't just be dumped on the open market like a crypto asset. That question stalled most lending protocols from building for it. ▫️ There was no depth to plug into. Isolated markets for tokenized stocks, credit, and treasuries barely existed a year ago, so even willing builders had nothing liquid to connect to. Both constraints are loosening. @kamino , @Morpho , and @pendle_fi already have real markets live, and the platforms moving now are the ones that'll own the utility phase of this category. Great article by pink brains, worth reading 🔻