a16z crypto: Not all tokenized assets truly and equally exist on-chain

Jinse Finance reported that on May 27, a16z crypto posted on the X platform, stating that not all tokenized assets genuinely and equally exist on-chain. Bonds are so far the largest category of tokenized assets, with a market value reaching 1.52 billion US dollars, but only about 5% of this supply is used in DeFi. The situation is similar for precious metals: although they have been put on-chain, most of them remain idle. Smaller asset categories differ. For reinsurance tokens, 84% of the supply is deployed in DeFi, while for private credit tokens, this proportion is 33%. This makes sense: those categories with the highest DeFi utilization were designed for DeFi from the outset, for example, through protocols like Nexus Mutual and Maple Finance. Today, many so-called "tokenization" practices are actually closer to digitization: merely transferring records onto the blockchain without unlocking additional new features. This is important because one of the core value propositions of on-chain financial systems is composability.