DeFi lending rises 72% on institutional interest, RWA collateral adoption

DeFi lending is poised to capture more institutional interest as tokenized RWAs are increasingly accepted as collateral for stablecoin loans, according to Binance Research.

Decentralized lending protocols are surging in total value and set to capitalize on the growing institutional adoption of stablecoins and tokenized assets, according to Binance Research.

Decentralized finance (DeFi) lending protocols are automated systems that facilitate lending and borrowing for investors via smart contracts, eliminating the need for financial intermediaries like banks.

DeFi lending protocols have risen more than 72% year-to-date (YTD), from $53 billion at the beginning of 2025 to over $127 billion in cumulative total value locked (TVL) on Wednesday, according to Binance Research.

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