TLDR Tech / Crypto
RWA Vaults - What They Are and How They Work
RWA vaults enable users to deposit stablecoins and earn yields from traditional assets like government bonds, corporate loans, and real estate debt, with vault managers handling offchain investments through SPVs and regulated custodians while users receive ERC-4626 tokenized shares. The model democratizes access to institutional-grade yields by eliminating geographic restrictions and slashing minimums from $100K+ to as low as $50, while maintaining DeFi composability through vault tokens usable as collateral. Tokenized US Treasuries have scaled to over $2.5 billion in TVL as of early 2025 from near-zero two years prior, with yield profiles ranging from 4-5% for Treasury vaults to 8-15% for higher-risk private credit exposures.
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