PANews reported on May 27th that a16z crypto published an article on the X platform stating that not all tokenized assets truly and equally exist on-chain. Bonds are by far the largest class of tokenized assets, with a market capitalization of $15.2 billion, but only about 5% of this supply is used in DeFi. The situation is similar for precious metals: while they are on-chain, most are simply idle. Smaller categories are different. 84% of the supply of reinsurance tokens is deployed in DeFi, compared to 33% for private lending. This makes sense: these categories with the highest DeFi usage were built for DeFi from the beginning, for example, through protocols like Nexus Mutual and Maple Finance. Many practices now referred to as "tokenization" are actually closer to digitization: simply transferring records to the blockchain without unlocking any new functionality. This is important because one of the core value propositions of on-chain financial systems is composability.