Decentralized lending protocols reduce total amounts, which are set to further achieve the growing institutional adoption of stablecoins and tokenized assets, according to Binance Research.
Decentralized Finance (DEFI) Lending protocols are automatic systems that facilitate lending and borrowing for investors through smart contracts, eliminating the need for financial mediators such as banks.
The lending protocols to the DeFI rose more than 72% year-to-date (YTD), from $ 53 billion to the beginning of 2025 to reach more than $ 127 billion to the combined total amount locked (TVL) on Wednesday, according to Binance Research.
Explosive growth is attributed to the Defi Lending Protocol that benefits from the accelerated adoption of institution of stablecoins and tokenized Real-world assets (RWAs).
“Like the adoption of Stablecoin and Tokenized Assets, Defi Lending Protocols are increasingly positioned to facilitate institutional participation,” Binance Research wrote in a Wednesday Wednesday report exclusively to the cointelegraph.
A significant portion of this growth has been attributed to Maple Finance and Eulerwho saw an explosion of 586% and 1466% increase, respectively.
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Defi lending to obtain more institutional participation from RWA collateral adoption
Binance Research sees defi lending protocols as growing facilitators of institutional participation, specifically due to the launch of institutional products, such as the horizon of the Aave Labs.
Horizon is an institutional lending market that gives borrowers to use RWA tokenized collateral for stablecoin loans.
Products like Horizon “aim to unlock new liquidity and convert RWAs to productive ownership within the decentralized financial ecosystem,” the report added.
Tokenized financial products, such as private credit and US Treasury Bonds, have become a focal point of interest for institutions. Tokenized private credit represents predominantly, or $ 15.9 billion, in a total of $ 27.8 billion Rwas onchain, followed by $ 7.4 billion worth of US wealth, according to Data From Rwa.xyz.
Related: Corporate Crypto Treasury Holdings Top $ 100B
Some RWA protocols enable the use of produce that carries tokenized US treasury products as collateral for many DEFI activities.
However, we are used Wealth as collateral For leveraged crypto trading has created new paths to delivering risk to markets, such as cascading effects for defi protocols, according to a June report from Moody’s service rating.
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