Real-world assets (RWAs) are gaining momentum in the blockchain space, with stablecoins leading the charge. They have surpassed Visa and Mastercard in annual transfers, showcasing their role as more than just digital dollars; they are now integral to financial infrastructure. However, many RWAs are still treated as mere digital replicas rather than functional components of decentralized finance (DeFi). This has resulted in parked capital rather than liquidity, as most tokenized assets lack integration into DeFi ecosystems. Legal classifications further complicate their usability, limiting their interaction with protocols. The recent passage of the GENIUS Act signals a shift towards compliant digital assets, allowing RWAs to evolve into scalable financial instruments. For RWAs to thrive, they must be designed for interoperability and compliance, enabling seamless integration into existing systems. As institutions develop their tokenization strategies, those that embrace this evolution will lead the way in the emerging tokenized economy, while others risk being left behind. Read more AI-generated news on: https://app.chaingpt.org/news