a16z crypto: Currently, most "tokenization" simply puts records on the blockchain without unlocking more new features.

CoinFeed reported on May 27th that a16z crypto published an article on the X platform stating that not all tokenized assets truly and equally exist on-chain. Bonds are by far the largest class of tokenized assets, with a market capitalization of $15.2 billion, but only about 5% of this supply is used in DeFi. The situation is similar for precious metals: while they are on-chain, most are simply idle. Smaller categories are different. 84% of the supply of reinsurance tokens is deployed in DeFi, compared to 33% for private lending. This makes sense: these categories with the highest DeFi usage were built for DeFi from the beginning, for example, through protocols like Nexus Mutual and Maple Finance.