DAS 2025 Day 3 Recap: The Institutional Revolution in RWA, DeFi Lending, and Tokenization
The final day of Blockworks' Digital Asset Summit 2025 in New York delivered powerful insights into how traditional finance and decentralized finance are converging at unprecedented speed. Day 3 focused on institutional investment in on-chain credit, real-world asset tokenization, and the evolving role of banks in the crypto ecosystem.
Institutional DeFi Lending Takes Center Stage
The summit kicked off with panels exploring how institutional investors are increasingly deploying capital on-chain. Representatives from Bidwise and Maple Finance highlighted how regulated asset managers are beginning to utilize DeFi lending pools. This early move by institutional players signals growing confidence in the on-chain lending ecosystem.
Sid Powell from Maple Finance noted during his panel, "I think off-chain, institutions are starting to come to DeFi," highlighting that this trend is still in its nascent stages but accelerating rapidly.
A central theme was the emergence of liquid staking tokens (LSTs) as collateral. Speakers noted that lending is shifting toward staking assets, with platforms now supporting tokens like GEO SOL. The panel outlined the clear advantages:
- Ethereum staking rates: ~3-4%
- Solana staking rates: 7-10%
- Combined lending yields potentially reaching 20%+ when staking rewards are factored in
However, speakers also addressed the barriers to LST adoption, particularly tax implications—both for staking rewards and for converting low-cost basis assets to LSTs.
The $19B RWA Revolution Gains Momentum
Solomon Tesfaye, Head of Capital Markets at Aptos Labs, provided context on the growing RWA narrative, revealing that over $19 billion of total assets have now been issued on-chain, with a remarkable 30% growth over just the past 30 days.
"Access is the most transformative impact for traditional finance institutions," Tesfaye explained, noting that 85% of the world population lacks access to traditional financial services. The current composition of on-chain assets is telling:
- 67% is private credit
- 20% is commodities
- The remainder falls under various other categories
During a separate panel, Tesfaye predicted significant changes ahead: "There'll be a lot of M&A activity as people look to basically offer both native blockchain products as well as traditional products."
BlackRock's BUIDL Milestone and Money Market Momentum
A highlight of the summit was discussion around BlackRock's tokenized USD Institutional Digital Liquidity Fund (BUIDL), which has surpassed $1 billion in assets under management within its first year. Robbie Mitchnick from BlackRock commented, "We have a long way to go, but we're excited by the progress of BUIDL."
The fund, tokenized by Securitize, is now available across six blockchains, attracting diverse ecosystems and investors. Michael Sonenshine, COO at Securitize, noted that passing the first $1 billion is the hardest milestone, after which liquidity and new use cases drive further growth.
Panelists from Ondo Finance, Securitize, Bank of New York Mellon, and Nomix discussed how tokenized treasuries have grown from around $1.2 billion to over $4.5 billion in the past year alone. Ian from Ondo Finance emphasized that their focus remains on assets with deep liquidity in public markets for use as collateral and global access.
Banks and Fintechs Embrace Digital Assets
A fascinating panel featuring representatives from traditional banking explored why financial institutions are increasingly drawn to crypto:
- Accessibility to Diverse Assets: Democratizing access to premium assets previously limited to wealthy individuals
- Crypto as a New Asset Class: Recognition of crypto as a legitimate asset class, leading to ETFs and other products
- Demand for Financial Product Variety: Meeting customer demands for broader financial product access
- Blockchain as Enhanced Infrastructure: Leveraging blockchain for faster settlement times and improved accessibility
Tom Paiket from Bank of New York Mellon Digital Asset business explained how BNY, as the world's largest custodian with $52 trillion in assets, is playing a growing role in crypto custody and tokenization. They hold underlying assets and enable the minting of tokens on both private permissioned and public chains, depending on client preferences.
The Future of Yield Generation and Staking
A provocative discussion around DeFi, AI, and the automation of yield generation suggested that the automation of yield strategies could transform everything into an on-chain savings account. This approach would make the yield stack more meritocratic, enabling the best protocols and products to rise to the top.
Lucas Bruder emphasized the importance of staking yield, noting: "It's all about REV. If there's no REV then the chain has no usage." Speakers explained that staking yield comes from two primary sources: protocol inflation and MEV (Maximal Extractable Value).
The panel noted that Solana has seen significant staking yield driven by meme coin trading and fees, with Jito software generating substantial revenue for validators and stakers. They also observed that when a blockchain launches, a high inflation curve incentivizes staking and secures the network, but as the chain matures, the percentage of yield from inflation decreases while REV increases.
Privacy and Security Imperatives
Security emerged as a foundational concern for institutional adoption. Speakers emphasized that blockchain technology can be revolutionary for financial asset interaction, but the secure foundation of the industry is still developing.
The Bybit hack was referenced as an example where the failure wasn't in smart contract verification but in basic corporate security practices. The panel recommended adapting existing security frameworks rather than reinventing them for blockchain environments.
As Pascal Gauthier had noted in an earlier session: "You cannot have a democracy if you don't have private property, and private property is based on security and privacy."
What's Next for RWA and Tokenization?
Panelists across multiple sessions shared predictions for the future of RWAs and tokenization:
- Increased M&A activity between broker-dealers and crypto counterparties
- More crypto-linked products like ETFs and ETPs
- Traditional products moving on-chain, including money market funds and fixed income
- Greater fractionalization, making products accessible to a broader audience
- Evolution of a robust secondary market for tokenized assets
- Democratization of finance, especially in developing markets
The long-term vision described by multiple speakers was a future where digital assets are seamlessly integrated into everyday financial life, resembling traditional brokerage accounts but with added benefits such as 24/7 efficient markets, programmable features, and greater accessibility.
Conclusion: The Great Convergence Accelerates
Day 3 of the Digital Asset Summit 2025 reinforced that we're witnessing not just the tokenization of assets but the transformation of entire financial systems. The institutional revolution in digital assets is no longer theoretical—it's happening now, with billions of dollars already flowing through these new rails.
As Edward Woodford summed up during his panel on stablecoins: "The big unlock is the distribution of stablecoin technology." This observation could apply equally to the entire digital asset ecosystem, as distribution and accessibility continue to expand, bringing these transformative technologies to more institutions and individuals worldwide.
The financial world of tomorrow is being built today, block by block, token by token—and after three days of insights at DAS 2025, it's clear that the pace of innovation is only accelerating.
