Standard Chartered Projects Rapid Growth in Tokenized Real-World Assets
Standard Chartered estimates tokenized real-world assets (RWAs) could reach a combined value of $2 trillion within the next three years. The projection follows a report from the investment bank, which sees increasing adoption of blockchain technology in global capital and payments flows.
DeFi Drives Expansion of Tokenized Assets
The bank�s report, shared Thursday, states that decentralized finance (DeFi) could challenge the dominance of traditional institutions as more investors turn to 'trustless' systems. DeFi, they said, is beginning to play a larger role in payments and investments, which may drive demand for tokenized RWAs aside from stablecoins.
- $750 billion is projected to move into tokenized money-market funds.
- Another $750 billion may flow into tokenized U.S. stocks.
- $250 billion is expected for tokenized U.S. funds.
- The final $250 billion could enter less liquid assets, such as private equity, commodities, corporate debt, and tokenized real estate.
Liquidity and Regulatory Landscape Are Key Factors
Geoff Kendrick, Standard Chartered�s global head of digital assets research, highlighted stablecoin liquidity and DeFi banking as critical for RWA growth. The report suggests that a self-sustaining cycle of DeFi growth is underway: as liquidity expands, it spurs more product development, which in turn attracts further liquidity.
Data from RWA.xyz indicates that a $2 trillion market cap by 2028 would mean more than a 57-fold increase from today�s estimated $35 billion cumulative RWA value. The total stablecoin supply also reached an all-time high as of October 3, recording a 46.8% increase year-to-date. Kendrick noted that stablecoin expansion is supporting the wider DeFi industry.
Regulatory Uncertainty Remains a Risk
Despite optimistic projections, Standard Chartered warns that regulatory uncertainty remains a significant challenge. The report notes that progress in the RWA sector could stall if comprehensive crypto legislation is not passed in the United States before the 2026 midterm elections.
Standard Chartered�s outlook suggests that the intersection of blockchain technology, DeFi, and traditional assets could reshape how capital markets function. However, clear regulatory frameworks may determine the pace and scale of growth in the sector.
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