Fixed-rate, fixed-term loans seen as key to expanding real-world assets in DeFi

Fixed-rate, fixed-term lending could expand institutional investment in real-world assets in decentralized finance by making borrowing costs and repayment dates predictable. Locking in financing below an asset’s yield would let investors borrow against their holdings and reinvest the proceeds. In its “Why real-world assets need fixed-rate loans onchain” report published on October 21, 2026, CoinDesk said stablecoin supply was holding around $300 billion and aggregate vault assets were approaching $20 billion. Morpho alone had more than $16 billion in deposits, mostly in variable-rate markets where borrowing costs depend on pool utilization.

Source: TokenPost