Real-world asset (RWA) protocols are gaining popularity in the DeFi community as they allow for the tokenization and trading of real-world assets such as stocks, government bonds, real estate, and commodities. DeFi offers advantages over traditional finance by making smart contracts transparent and enabling financialization of these assets through decentralization. The top uncollateralized lending protocols for institutions in TrueFi and Maple saw significant increases in 2023, as did the real-world asset tokenization platform Centrifuge. The tokenization of real-world assets is increasing, with RWA assets now accounting for 25% of the collateral for the decentralized stablecoin DAI. However, non-collateralized lending protocols carry the risk of debt default, and readers should conduct their own research before making investment decisions.