Wall Street put $7B into tokenized funds, but under 1% is actually being used in DeFi

What happened

Wall Street put seven billion dollars into tokenized funds, but under one percent is actually being used in decentralized finance, while DeFi recorded ninety‑nine hacks in the second quarter of 2026 and real‑world tokenized assets in DeFi rose to three point nine seven billion dollars, an all‑time high.

Confirmed

Global impact / market context

The mismatch between large institutional money and its tiny share in DeFi shows investors are wary after many hacks, which could slow the growth of tokenized assets in decentralized markets.

Analyst inference

Even as tokenized real‑world assets reach record levels, the surge in DeFi security breaches highlights sector risk, likely prompting tighter controls and shaping where future capital flows.

Analyst inference

What to watch

1. The share of institutional tokenized‑fund capital that moves into DeFi, indicating confidence after the hack surge. Proposed
2. Regulatory actions responding to DeFi security incidents, which could change how tokenized assets are allowed in decentralized protocols. Proposed
3. New security tools or insurance products for DeFi, which may attract more institutional money to tokenized‑asset platforms. Proposed

Affected assets

• RWA — Xend Finance
• DEFI — DeFi

Evidence

• cryptoslate.com