Stablecoins Could Pave the Way for Composable Real-World Assets in DeFi Ecosystems

Key Points

1. Many RWAs remain underutilized in wallets due to lack of dynamic programmability and legal compliance issues, limiting their interaction with DeFi protocols.

2. The GENIUS Act provides a federal framework for stablecoins backed by U.S. Treasurys, marking a significant regulatory milestone for RWAs.

3. Liquidity for RWAs is often siloed, requiring infrastructure with built-in compliance and interoperability to function effectively in DeFi.

4. DeFi's most used assets (stablecoins, ETH, liquid staking tokens) are native and highly liquid, while RWAs struggle to integrate without significant platform modifications.

5. Strategic tokenization and purpose-built compliance systems are essential for RWAs to achieve functional relevance and unlock efficiencies in DeFi.