Tokenization, Stablecoins Push DeFi Lending Past $127B TVL in 2025
The decentralised finance (DeFi) sector is off to a powerful start in 2025, with lending protocols recording one of their strongest years yet. A new report from Binance Research shows that total value locked (TVL) in DeFi lending has risen by 72% year-to-date, jumping from $53 billion in January to more than $127 billion this week.
The sharp increase reflects a wider embrace of stablecoins and tokenised real-world assets (RWAs), which are drawing in both retail and institutional investors. By integrating these assets into lending protocols, DeFi is steadily becoming a bridge between traditional capital markets and decentralised financial infrastructure.
Binance Research noted that institutional involvement is a key driver of the rally. “As adoption of stablecoins and tokenised assets accelerates, DeFi lending protocols are increasingly positioned to enable large-scale participation from traditional players,” the report explained.
Some platforms have seen extraordinary gains. Maple Finance surged by 586% this year, while Euler skyrocketed 1,466%, highlighting the growing appetite for on-chain credit markets. Analysts say these developments are pushing forward more transparent and efficient financial products that could rival traditional intermediaries in the long run.
The tokenisation trend is also accelerating. According to RWA.xyz, the value of tokenised assets has climbed to nearly $28 billion, representing a 2.39% gain over the past month. The number of tokenised asset holders also rose by 8.65%, now exceeding 373,000. Stablecoins continue to dominate with a market size of $273.18 billion, up more than 6% month-over-month.
Breaking down the asset classes, private credit leads the pack at $15.98 billion, followed by U.S. Treasury debt at $7.58 billion. Commodities and institutional funds each account for $1.78 billion, while tokenised public equities remain relatively small at $341.7 million.
Among top projects, Ondo Finance holds the strongest position with a fully diluted valuation of $9.7 billion. Plume ranks second with $807 million, while Vision takes third at $688 million. Other players such as WhiteRock, CreditCoin, and Mantra are also building momentum, adding to the competitive landscape of RWA innovation.
The rise of RWAs and stablecoins in DeFi lending is widely seen as a signal that crypto markets are maturing. By combining blockchain’s transparency with the familiarity of real-world assets, DeFi is becoming less speculative and more integrated into the broader financial system—potentially laying the foundation for the next phase of institutional adoption.
