Tokenized Assets Show Wide Range in On-Chain Utilization

Tokenized assets are becoming increasingly popular in the financial sector, allowing for the digitization of various types of securities and commodities. However, not all tokenized assets are created equal when it comes to their on-chain utilization.

A recent post by a16z crypto points out that bonds and precious metals have relatively low on-chain activity, despite having a significant market value. In contrast, reinsurance tokens show high adoption rates, with 84% of the supply being used in DeFi applications.

Smaller asset categories like private credit tokens also show moderate utilization rates, at around 33%. This disparity is largely due to the different design goals and protocols surrounding these token types. Those that were designed for DeFi from the outset tend to have higher on-chain activity.