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Overview:
The DeFi lending sector has grown 72% this year, reaching $127 billion in total value locked (TVL).
Galaxy Digital CEO Mike Novogratz predicts that AI agents will become major users of stablecoins for daily transactions, potentially revolutionizing digital payments.
Trust Wallet has integrated tokenized stocks and ETFs, allowing users to access and trade traditional financial assets directly from their self-custodial wallets.
The cryptocurrency market continues to evolve with major developments across different areas. Today, DeFi lending protocols experienced significant growth, AI-based applications gained attention, and a popular self-custodial wallet introduced tokenized real-world assets (RWAs) for users worldwide. These shifts highlight rising institutional involvement and greater technological adoption in the crypto sector. Let’s examine some of the major market developments.
DeFi Lending Sees 72% Growth with Institutional Support
According to Binance Research, DeFi lending protocols have experienced an impressive 72% increase in total value locked (TVL) this year. This growth has allowed DeFi lending to increase from $53 billion to over $127 billion by 2025. This rapid expansion is due to a broad institutional adoption of stablecoins and tokenized real-world assets (RWAs), which are now more widely accepted as collateral in DeFi loans.
In addition, the inclusion of RWAs in DeFi lending is considered a transformative development, particularly for institutional investors. Platforms such as Maple Finance and Euler have significantly contributed to this trend, with their TVL increasing by 586% and 1,466%, respectively.
As more institutional-grade products like Aave Labs' Horizon are introduced, it is anticipated that more institutions will participate in DeFi lending, with tokenized RWAs emerging as the favored collateral for stablecoin loans.
With the addition of new asset classes, such as private credit and US Treasury bonds, tokenized on DeFi, the market is poised to expand further. These offerings seek to bridge traditional finance and decentralized finance, opening the door to more liquidity and opportunities for institutional investors. Consequently, DeFi lending is quickly becoming a significant player in the overall cryptocurrency ecosystem.
AI Agents Poised to Drive Stablecoin Usage, Says Novogratz
Mike Novogratz, CEO of Galaxy Digital, foresees that AI agents will be the primary consumers of stablecoins in the near future. Novogratz said that his goal is for autonomous AI agents to handle day-to-day transactions like grocery shopping by using stablecoin transactions instead of more conventional banking methods like wire transfers or Venmo.
AI agents are becoming more intelligent, and they will automatically carry out financial transactions, leading to an exponential growth in the use of stablecoins. Novogratz's remarks coincide with a general trend for major tech firms to consider stablecoins as a means for cross-border payments and a way to reduce transaction fees.
Companies like Apple, X, and Google are already testing stablecoins as part of their payment services, which could indicate a change in how financial transactions are done in the future.
The integration of AI into the payments sphere underscores stablecoins' position within the evolution of digital finance. The use of stablecoins by AI agents could pave the way for new opportunities for both consumers and businesses, making transactions more efficient and accessible.
Trust Wallet Integrates Tokenized Stocks and ETFs into Self-Custodial Platform
Trust Wallet, the self-custodial wallet developed by Changpeng Zhao (CZ), now supports tokenized stocks and ETFs on its blockchain, bringing real-world assets (RWAs) into the crypto ecosystem. This development allows users worldwide to access tokenized versions of US stocks, ETFs, and bonds. This integration is achieved through a partnership with Ondo Finance and 1inch and supports Ethereum with plans for Solana in the future.
By providing tokenized RWAs, Trust Wallet helps users trade traditional financial instruments such as stocks and bonds directly from their wallets. This advancement signifies a major stride towards democratizing access to financial markets, removing the necessity of conventional brokers and paperwork. With only a minimum investment of $1, users can now easily convert USDC into tokenized assets such as stocks or ETFs.
Although Trust Wallet's RWAs are not available in some regions, like the United States and the UK, the integration represents a significant step towards integrating traditional finance with decentralized platforms. As Trust Wallet continues to grow its support for tokenized RWAs, the self-custodial wallet industry is poised to play a significant role in the future of finance.
