Tokenized Gold Controls 90% of Commodity DeFi Deposits

Tokenized commodities have a $7.66 billion market capitalization, but only $134 million is deposited in DeFi venues. Issuer redemption terms and secondary-market liquidity create distinct risks for decentralized lending protocols. Investors should distinguish token ownership from collateral eligibility, borrowing activity and yield generation. Tokenized commodities have accumulated billions of dollars in market value, but their use in decentralized finance remains heavily concentrated in gold, exposing a gap between the issuance of blockchain-based assets and their acceptance as financial instruments.

Source: ETHNews