Tokenized funds have reached a record high as DeFi protocols and institutional asset managers push more traditional financial products onto blockchain rails.

The sector’s market cap climbed to about $34.3 billion, according to Token Terminal data, extending a rapid expansion led by yield bearing stablecoins, tokenized Treasuries, money market products, and structured credit strategies.

SkyEcosystem, the protocol formerly known as MakerDAO, has become one of the largest players in the category. Its sUSDS product leads Token Terminal’s tokenized funds dashboard, while its broader RWA vaults hold more than $2 billion across tokenized Treasuries, money market funds, and structured credit.

The shift marks a major change for a protocol that was once defined mainly by crypto native collateral. Real world asset strategies now account for more than 60% of Sky’s protocol revenue, linking its economics more directly to tokenized versions of traditional credit and cash management products.

Sky’s Agent Network is central to that pivot. The system lets allocators deploy USDS into yield generating strategies through structured vaults, giving different managers a shared infrastructure layer to compete for capital.

Ethereum remains the main settlement layer for institutional tokenization. BlackRock’s BUIDL fund launched on Ethereum, Franklin Templeton has expanded onchain products across Ethereum compatible rails, and the network continues to hold one of the largest shares of tokenized RWA value.

The broader RWA market is larger than tokenized funds alone. RWA.xyz shows more than $27 billion in distributed asset value, while other market estimates place tokenized RWAs above $30 billion depending on whether stablecoins, commodities, private credit, and fund products are included.

The growth reflects a clear shift in onchain finance. Tokenization is no longer limited to experiments around Treasuries. The category now includes funds, credit products, yield bearing stablecoins, commodities, and institutional settlement infrastructure.

The market remains concentrated. A small group of protocols, asset managers, and blockchains control much of the current value, which makes smart contract risk, governance risk, and issuer risk more important as the sector scales.

The $34 billion milestone gives tokenized funds a larger role in crypto market structure. The category is still small beside the global fund industry, but it has moved far beyond the proof of concept stage.