On May 27, a16z crypto posted on platform X stating that not all tokenized assets truly and equally exist on the blockchain. Bonds represent the largest category of tokenized assets to date, with a market value of $15.2 billion, yet only about 5% of this supply is utilized in DeFi. A similar situation applies to precious metals: although they are on-chain, most remain idle. Smaller categories differ, however. For instance, 84% of the supply of reinsurance tokens is deployed in DeFi, while the figure for private credit is 33%. This makes sense, as these categories with the highest DeFi utilization were built for DeFi from the start, through protocols like Nexus Mutual and Maple Finance. Today, many practices referred to as 'tokenization' are actually closer to digitization: merely transferring records to the blockchain without unlocking additional new functionalities. This is significant because one of the core value propositions of on-chain financial systems is composability.