A16z Crypto Highlights Limited On-Chain Use of Tokenized Assets

A16z Crypto has highlighted that not all tokenized assets are equally present on the blockchain. According to PANews, the firm noted on the X platform that bonds, the largest category of tokenized assets with a market value of $15.2 billion, have only about 5% of their supply utilized in DeFi. Similarly, while precious metals have been tokenized, most remain idle on the blockchain. In contrast, smaller categories show different trends. Reinsurance tokens have 84% of their supply deployed in DeFi, and private credit has a 33% deployment rate. This is logical, as these categories were designed for DeFi from the outset, utilizing protocols like Nexus Mutual and Maple Finance.