Centrifuge TVL Surpasses $1 Billion Amid Institutional RWA Adoption Surge

Blockchain infrastructure platform Centrifuge has surpassed $1 billion in total value locked (TVL), a milestone that places it among a select group of real-world asset (RWA) platforms including BlackRock’s BUIDL fund and Ondo Finance. The achievement reflects a broader shift in institutional investment strategies, with capital moving from pilot projects to operational, onchain deployments [1].

According to Centrifuge CEO Bhaji Illuminati, the surge in TVL is driven by strong onchain allocator demand, particularly for tokenized assets that offer higher yields than traditional options. Illuminati noted that US Treasurys remain the dominant entry point for onchain allocators, but tokenized funds like JAAA—based on Janus Henderson’s AAA-rated CLO—are rapidly gaining traction. The product, a digital version of a collateralized loan obligation fund, has emerged as the fastest-growing tokenized fund in the space [1].

In early July, Centrifuge announced a partnership with S&P Dow Jones Indices to launch a tokenized S&P 500 product, structured as a regulated fund in the British Virgin Islands. Illuminati described the pre-launch demand as “very strong,” with plans to ensure broad accessibility through an anchor pool of capital. Looking ahead, the platform is set to expand its offering to include sector-specific and thematic index products, aiming to diversify the range of onchain investment opportunities [1].

On the demand side, stablecoin issuers and yield-focused protocols are leading buyers of tokenized assets, using RWAs to establish a baseline yield for their reserves. This trend highlights the growing integration of RWAs into DeFi ecosystems, where they serve as foundational building blocks for yield strategies and composability-driven financial products.

Centrifuge is also working toward expanding access for retail investors through its deRWA initiative, which aims to introduce tokenized assets on major exchanges, wallets, and lending protocols. deRWA refers to tokenized real-world assets engineered for interoperability and liquidity within decentralized finance. S&P Dow Jones Indices has expressed interest in collaborating with exchanges and custodians to facilitate the listing of tokenized versions of its benchmarks, signaling broader institutional support for the tokenization trend [1].

Illuminati expects public market RWAs like Treasurys and equities to lead the adoption curve due to their liquidity and familiarity. However, he anticipates that private markets will eventually dominate, as blockchain technology continues to address inefficiencies and unlock value in traditionally opaque assets. This vision aligns with a broader industry trend of digitizing traditional financial instruments to enhance transparency, reduce counterparty risk, and improve market efficiency.

The TVL growth on Centrifuge has been particularly steep, with nearly 94% growth recorded over a two-week period. This rapid acceleration suggests that tokenization is moving from a speculative phase to a more institutionalized and scalable model. The development highlights the maturation of the RWA market, where platforms that offer compliant, transparent frameworks are gaining traction and attracting real capital.

Notably, this growth is based on actual onchain data and real-world deployments, rather than speculative forecasts, reinforcing the credibility of Centrifuge’s achievements. As more firms explore ways to tokenize traditional assets, platforms that provide robust infrastructure and regulatory clarity are likely to see continued adoption and TVL growth [1].

The growing momentum in the RWA space also coincides with regulatory developments, such as the U.S. Treasury’s exploration of digital identity verification in DeFi. These efforts aim to address compliance and governance challenges, potentially facilitating further institutional participation in tokenized asset markets.

Centrifuge’s TVL milestone underscores the increasing relevance of RWAs as a core component of the evolving financial infrastructure. As institutional capital continues to flow into tokenized assets, the role of blockchain-based platforms in facilitating this transition is becoming more pronounced.

Sources:

[1] Cointelegraph - https://cointelegraph.com/news/centrifuge-surpasses-1b-tvl-rwa-institutional-demand

[2] identosphere.net - https://identosphere.net/web3/

[3] TradingView - https://www.tradingview.com/news/providers/cointelegraph/