APIA, Samoa, July 27, 2026 /PRNewswire/ — HTX Research, the research arm of crypto exchange HTX, has published a new report, From Asset Tokenization to Cash-Flow Tokenization: RWA and DeFi Enter the Second Half of Programmable Finance. The report examines how real-world asset, or RWA, tokenization and DeFi cash-flow valuation, although often treated as separate subjects, are moving toward the same industry transition: from “asset existence” to “asset utility,” and from “protocol usage” to “protocol profitability.”

Proof of concept is complete, but financialization is not

According to the report, the market value of tokenized assets excluding stablecoins has expanded from less than $3 billion in mid-2024 to more than $30 billion in April 2026, and later remained near $34 billion. HTX Research said this growth shows that traditional financial assets can be mapped effectively onchain, while institutions are starting to view blockchain as infrastructure for issuance, settlement, and asset management.

However, the report notes that $34 billion remains a very small portion of global bond, equity, gold, and credit markets, which are measured in the tens of trillions of dollars. HTX Research argues that RWA is better described today as “proven feasible” rather than mainstream. Onchain issuance, holding, and settlement have been demonstrated, but large-scale composability, credit creation, and secondary liquidity have not yet been achieved.

That distinction is central to the report’s argument because tokenization can improve recordkeeping, transfer interfaces, and settlement processes without necessarily turning an asset into usable collateral or a liquid building block for DeFi. In that sense, the report treats RWA growth as an infrastructure milestone, not yet as evidence that traditional financial markets have migrated onchain at scale.

As a result, the report says the metrics used to assess the market must also evolve. Measures such as tokenized asset size, issuance counts, and holder numbers are becoming less sufficient on their own. HTX Research points instead to utilization rates, turnover, collateral ratios, borrowing demand, real yield, default handling, secondary market depth, and protocol revenue as increasingly important indicators.

The onchain utilization paradox

One of the report’s central findings is what it describes as a “scale–activity inversion.” In many cases, the largest tokenized asset categories show the lowest levels of onchain use. Public data cited in the report indicates that tokenized bonds are among the largest categories, but only around 5% of their supply is deployed in DeFi. By contrast, reinsurance tokens, which are much smaller in overall scale, have a significantly higher proportion deployed in DeFi protocols.

HTX Research said this highlights a distinction that is often missed: “being tokenized” and “being used in onchain finance” are not the same thing. Tokenization mainly represents asset rights onchain, while onchain financial use depends on composability, collateral usability, and transferability. Many Treasury and gold products, the report says, still function largely as onchain receipts. They may provide a more efficient interface for registration and transfer, but often lack open transferability, permissionless collateralization, or automated liquidation.

The report identifies four main constraints behind low utilization. First, compliant transfer restrictions can limit open composability. Second, redemption and NAV cycles may not operate continuously, creating a mismatch with 24/7 protocol activity. Third, pricing and risk models remain immature, especially where assets without continuous secondary markets depend on NAVs, broker quotes, or model-based valuations. Fourth, legal recourse remains offchain because smart contracts cannot complete foreclosure or bankruptcy liquidation.

From TVL logic to profit logic

On the DeFi side, HTX Research said valuation frameworks are changing as protocols accumulate real users, transactions, and fees. Total value locked, trading volume, and FDV/TVL mainly reflect scale, rather than profitability or the ability of a protocol to capture value.

The report proposes a more operational test: whether the transmission chain from protocol activity to token value is complete. HTX Research said that chain has at least six links. It must be determined whether revenue reflects real demand rather than short-term incentives; whether the protocol can retain revenue, since valuation depends more on net revenue than gross fees; whether revenue covers risk costs such as bad debt, liquidation failures, and oracle risk; whether the DAO has capital allocation capability; whether the token has an explicit value-capture mechanism; and whether regulation recognizes that transmission.

This framework is meant to separate protocol usage from token economics. A protocol may process transactions or generate fees while still lacking a clear mechanism that links those cash flows to governance, risk reserves, buybacks, dividends, or any other form of token-level value capture recognized by its rules and applicable regulation.

Aave is presented as an example of this shift, with real borrowing demand, real interest income, and observable fee structures. The report notes that DeFiLlama breaks down Aave V3 fee sources across borrow interest, flash loan fees, liquidation fees, Paraswap swap fees, and Chainlink SVR. At the same time, HTX Research emphasizes that governance tokens are not stocks, and that protocol revenue does not automatically belong to token holders.

Three layers and greater complexity

HTX Research said onchain finance is forming a three-layer structure. The first layer consists of compliant stablecoins and onchain cash management, which handle payment and settlement. The second includes tokenized Treasuries, money market funds, private credit, gold, and securitized assets, which provide yield and collateral. The third includes protocols such as Aave, Maple, Sky, Pendle, Uniswap, and Hyperliquid, which support lending, trading, rates, risk, and leverage.

The report says greater efficiency also brings more complex risk transmission. Offchain financial risk, smart contract risk, liquidity risk, and regulatory risk can be stacked into a single system. In a 24/7 environment that is leveraged, composable, and automatically liquidated, that transmission can occur faster than in traditional finance.

For readers tracking the sector, the practical implication is that risk analysis cannot stop at either the asset issuer or the DeFi protocol in isolation. The report’s three-layer model requires attention to how cash assets, tokenized yield products, and financial applications interact when collateral values, liquidity conditions, or compliance rules change.

HTX Research identifies five areas that require continuous monitoring: asset authenticity and reserve transparency, liquidity mismatch, compliant composability, DAO governance and value transmission, and oracle pricing.

The competitive focus of the second half

The report frames the development of RWA and DeFi in two phases. For RWA, the first half was issuance, while the second half is usage. For DeFi, the first half was function, while the second half is profitability.

HTX Research identifies five scenarios that it says could create deeper financial markets onchain: tokenized Treasuries entering collateral and repo markets; private credit integrating with institutional lending protocols to form onchain fixed-income markets; tokenized gold and commodities becoming derivatives and margin assets; compliant equities and fund shares entering 24/7 trading and financing systems; and DeFi protocols entering a cash-flow valuation era through explicit value-capture mechanisms.

Together, the report says, these scenarios point to the same broader change. RWA competition is moving from the speed of tokenization to the depth of onchain usage, while DeFi competition is shifting from TVL scale to cash-flow quality.

For market participants, HTX Research said the tools used to observe this process need to change as well. Beyond asset size and TVL rankings, utilization, collateral depth, revenue structure, and risk parameters are becoming more explanatory indicators. The firm said it will continue tracking the development of tokenized assets, stablecoins, and onchain financial infrastructure, while providing data-driven analysis for the market.

About HTX Research

HTX Research is the dedicated research arm of HTX Group. It conducts in-depth analysis, produces reports, and provides evaluations across cryptocurrency, blockchain technology, and emerging market trends. The organization says it focuses on data-driven insights and strategic foresight, with research methodologies and analytics intended to support understanding of digital asset market dynamics.