RWA is the key pillar for the @arbitrum DeFi Stack The evolution of DeFi can be viewed as a series of capital layers: Native assets → Staking derivatives → Yield-bearing tokens Now, RWA is the Endgame 🧵

2 - Arbitrum’s RWA Growth Potential Arbitrum has rapidly positioned itself as the second most important blockchain after Ethereum for RWA development ▸ $300M in RWA TVL→ A 30x increase year-over-year ▸ $4.7B in circulating stablecoins on Arbitrum → This deep liquidity provides a strong foundation for RWA collateralization, on-chain bond markets, and yield-generating strategies Among L2s, Arbitrum is one of the few to explicitly define RWA as a core component of its DeFi roadmap Through its STEP, Arbitrum has committed serious capital to this thesis: ▸ 85M ARB allocated in STEP 1.0 to support yield-bearing and stable RWAs ▸ STEP 2.0 recently approved an additional 35M ARB specifically for tokenized U.S. Treasuries With the global RWA market expected to grow from $24B today to over $18 trillion by 2033, Arbitrum is in a prime position to capture the next wave of institutional capital flowing on-chain → Arbitrum is becoming a serious on-chain venue for regulated assets

3 - Key RWA Components on Arbitrum The majority of RWA value on Arbitrum comes from US Treasury-related assets, reflecting strong institutional interest and stability ➢ Tokenization Layer: The Foundation of On-Chain Real Assets This is where traditional financial institutions tokenize real-world assets — bringing instruments like U.S. Treasuries, European sovereign bonds, real estate, and equities onto Arbitrum Key Issuers ↓ ▸ @Spiko_finance ▸ @FTI_US ▸ @BlackRock ▸ @OpenEden_X ▸ @OndoFinance ▸ @DinariGlobal ➢ DeFi Unlock Layer: Activating RWA Capital RWA tokens alone are not useful unless they can be integrated into DeFi primitives. This second layer consists of protocols enabling that integration: Key Protocols ↓ ▸ @CamelotDEX : deploys RWAs into liquidity pools ▸ @pendle_fi : unlocks future yield from RWAs via PT/YT mechanics ▸ @OpenEden_X : provides CDP structures using RWAs as collateral ▸ @OstiumLabs : Enables trading of synthetic assets linked to RWAs These protocols represent the composability layer, where tokenized bonds or real estate can be collateralized, lent, farmed, or speculated on effectively turning static RWA exposure into productive DeFi capital

4 - The untapped potential of RWA in Arbitrum DeFi RWAs are booming, but beneath the surface of this rapid growth lies a critical bottleneck: → More than 91% of RWA tokens are currently held in EOAs, not deployed into protocols. This means that while the infrastructure for tokenizing real-world value is evolving rapidly, the actual utilization of these assets in DeFi remains extremely limited. The turning point will come when these dormant RWAs start flowing into DApps, whether as collateral in Aave or Morpho, as yield strategies in Pendle’s PT/YT, or as liquidity on Uniswap. → At that moment, RWAs shift from a narrative to becoming the backbone of DeFi. RWAs hold massive potential. But until they become truly composable and are actively integrated across DeFi, we’re only halfway there. Tokenization is just step one. Activating that capital is the next step.

5 - Big thanks to the @EntropyAdvisors team for sharing the data and insights that helped make this article possible Your work gave us a clearer view of the RWA space and added real depth to the analysis

6 - Follow these CTs to stay ahead of the game ▸ @sgoldfed ▸ @BFreshHB ▸ @daddysether ▸ @MarcinPress ▸ @CupOJoseph ▸ @Churro808 ▸ @Deebs_DeFi ▸ @0xCheeezzyyyy ▸ @thelearningpill ▸ @YashasEdu ▸ @tomwanhh ▸ @yotamha1 Don’t miss valuable insights and alpha on Arbitrum, these voices are leading the conversation