According to Binance Research, decentralized finance (DeFi) lending protocols will experience accelerated growth in 2025. Total value locked (TVL) is increasing by more than 72% year to date from $53B to more than $127B.
This spike reflects the growing institutional usage of stablecoins and tokenized real-world assets (RWAs). DeFi lending platforms enable automated loans and borrowing through smart contracts, removing traditional financial intermediaries such as banks. Key drivers of this rise were protocols such as Maple Finance and Euler, which saw TVL gains of 586% and 1,466%, respectively.
Institutional engagement is projected to increase further with new solutions. Some platforms like Aave Labs' Horizon allow borrowing against tokenized RWAs. This frees liquidity and transforms assets like private credit and US Treasury bonds into productive financial tools inside the DeFi ecosystem.
While RWAs provide a bridge between traditional and decentralized banking, they also introduce complicated hazards, such as cascade effects associated with using US Treasurys as collateral, as emphasized in recent Moody's reports.
This quick rise establishes DeFi lending as a vital component in mainstreaming crypto and integrating digital assets into global financial markets.
