Three tokenized funds from major traditional finance players — BlackRock (BUIDL), Circle (USYC), and Franklin Templeton (iBENJI) — have collectively added approximately $7.1 billion in market cap since the start of the year, bringing their combined capitalization to $7.23 billion. These three products represent a dominant share of the total on-chain tokenized asset market, estimated between $33.9 billion and $36.7 billion. Despite their substantial size, these funds show near-zero integration with decentralized finance, with utilization rates between 0% and 1.05%. In contrast, credit-focused tokenized assets demonstrate DeFi integration rates ranging from 50% to 97%. Even modest 5% integration of these funds into DeFi protocols would inject an estimated $350 million in new collateral into these markets.
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