The decentralized finance (DeFi) sector has witnessed a significant influx of real-world assets (RWA), with approximately $2.7 billion of the $27 billion in tokenized RWA assets under management now actively used in lending markets. These assets are primarily credit assets with positive yield spreads, such as those on platforms like Maple, Aave, Morpho, and Kamino. The adoption of RWA in DeFi is driven by open permissions, easy integration, and cross-chain distribution designs. Recent regulatory milestones, including the GENIUS Act and SEC approvals, have accelerated the tokenization trend, with stablecoin supply surpassing $330 billion. Despite U.S. Treasuries accounting for nearly half of tokenized AUM, credit assets dominate DeFi deposits due to higher yields. Platforms like Morpho and Aave have seen substantial RWA deposits, with credit assets making up 80% of these deposits. The rise of reinsurance as a new composable asset class further highlights the evolving landscape of DeFi collateral.