---
title: "DeFi Market Sees Limited Integration Despite Significant On-Chain Value"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/286802431.md"
description: "The on-chain Real World Asset (RWA) market is valued at nearly $30 billion, but only $2.47 billion is actively locked in decentralized finance (DeFi). Bond and money market funds account for over $16.6 billion on-chain, with only $920 million in DeFi. Private credit shows the highest DeFi penetration at 39%. Compliance restrictions and transfer controls are limiting the integration of open DeFi systems, according to IOSCO and RedStone."
datetime: "2026-05-18T17:08:07.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/286802431.md)
  - [en](https://longbridge.com/en/news/286802431.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/286802431.md)
---

# DeFi Market Sees Limited Integration Despite Significant On-Chain Value

According to NS3.AI, recent data from DefiLlama indicates that the on-chain Real World Asset (RWA) market is valued at nearly $30 billion. However, only $2.47 billion of this is reflected as active Total Value Locked (TVL) in decentralized finance (DeFi). Bond and money market funds represent over $16.6 billion on-chain, yet merely $920 million is actively engaged in DeFi. Notably, private credit exhibits the highest DeFi penetration at 39%. IOSCO and RedStone have highlighted that compliance restrictions, transfer controls, and investor allowlists are hindering the full integration of open DeFi systems.

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