Standard Chartered Bank has projected that the market value of tokenized real-world assets (RWAs), excluding stablecoins, could increase dramatically from approximately $35 billion today to nearly $2 trillion by 2028. This significant growth indicates a shift in how assets are managed and traded, particularly through decentralized finance (DeFi) platforms.
According to Geoffrey Kendrick, head of digital assets research at Standard Chartered, the expansion of the RWA market is largely driven by the ongoing boom in stablecoins. Kendrick noted in a report released on Thursday that the rise of decentralized finance is providing a compelling alternative to traditional financial systems, which are typically reliant on centralized intermediaries like banks.
Kendrick emphasized that most of the anticipated growth in tokenization will occur on the Ethereum network. He highlighted Ethereum’s resilience, noting that it has operated for over a decade without a single mainnet outage. In his view, the network’s reliability outweighs considerations such as speed or lower costs offered by competing blockchains.
The bank estimates that tokenized money-market funds and publicly listed equities could each represent roughly $750 billion of the projected $2 trillion market. The remainder is expected to comprise various asset classes, including private equity, commodities, corporate debt, and real estate.
Kendrick also pointed out that the surge in stablecoin adoption, particularly expected in 2025, has transformed DeFi from a niche sector into a mainstream financial ecosystem. This evolution empowers non-bank entities to manage payments and savings that were traditionally under the control of banks. He specifically identified lending and RWA tokenization as key areas where DeFi protocols could significantly disrupt conventional finance.
The report further highlights that the increased use of stablecoins in developed markets has enhanced on-chain liquidity, fostering innovation within DeFi services such as lending and borrowing. Kendrick remarked, “
Stablecoins have created several necessary pre-conditions for a broader expansion of DeFi via the three pillars of increased public awareness, on-chain liquidity, and on-chain lending/borrowing activity in fiat-pegged products.
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Despite its optimistic forecast, Standard Chartered has issued a cautionary note regarding potential risks. The bank warns that a lack of clear regulatory guidelines in the United States before the 2026 midterm elections could create uncertainties in the market. Nonetheless, they do not consider this scenario as their base case.
In conclusion, the anticipated growth of the tokenization market signifies a transformative period for financial systems globally, driven by technological advancements and evolving market dynamics. With Ethereum at the forefront, the future of asset management is set for a substantial shift in the coming years.
