Tokenization Could Drive DeFi Assets to $2.7 Trillion by 2030, Says Standard Chartered
Standard Chartered projects that assets locked in decentralized finance (DeFi) could grow dramatically to reach $2.7 trillion by the end of 2030. This expansion would be fueled by both tokenized real-world assets (RWAs) and crypto-native assets interacting through onchain protocols.
Growth Potential in Tokenized Real World Assets and DeFi
According to Geoff Kendrick, head of digital assets research at Standard Chartered, the amount of tokenized assets active in DeFi could increase 37-fold by 2030. Currently, only a small portion of tokenized assets—about 3% of stablecoins and 10% of tokenized RWAs—are utilized within DeFi markets. Kendrick estimates these figures will climb to roughly 30% by 2030, signaling a significant rise in asset tokenization adoption in DeFi platforms.
Challenges in Market Fragmentation and Liquidity
While tokenization promises to channel more capital into DeFi, some experts caution that it does not automatically solve market liquidity or unify fragmented trading venues. Chris Kim, CEO of Axis, has noted that multiple blockchain issuances of the same asset can lead to siloed liquidity pools, pricing disparities, and increased transaction costs. Similarly, Ondo Finance’s Oya Celiktemur emphasized that simply tokenizing assets, especially illiquid ones, does not guarantee seamless liquidity in the marketplace.
Uniswap as a Potential Centralized Hub for Tokenized Assets
Kendrick identified Uniswap, a leading decentralized exchange, as a likely core venue for trading tokenized assets. Uniswap’s size, established reputation, and resilience across crypto cycles position it as an attractive platform for institutional investors prioritizing security and stability. Successful integration with traditional financial institutions could further enhance Uniswap’s market presence and transaction volume.
Why It Matters
This forecast by Standard Chartered highlights the growing institutional confidence in asset tokenization and decentralized finance as drivers of digital finance innovation. The projected acceleration in tokenized RWAs’ integration with DeFi protocols could reshape market infrastructure by enabling greater access to diverse asset classes. However, addressing liquidity fragmentation and establishing unified trading frameworks remain critical challenges for sustainable growth in this evolving market.
Key Details
- Standard Chartered anticipates DeFi assets to grow from current levels to $2.7 trillion by 2030.
- Tokenized RWAs and crypto-native assets will jointly contribute to this growth.
- Tokenized assets currently represent a small share of DeFi usage (about 3.5%) expected to rise to 30%.
- Non-stablecoin tokenized RWAs may reach $2 trillion by 2028, including money-market funds and equities.
- Experts warn tokenization alone does not ensure liquidity or market unity.
- Uniswap may become a key venue for tokenized asset trading due to its scale and institutional appeal.
What to Watch Next
Observers will likely monitor the pace at which tokenization expands within DeFi protocols and whether institutional partnerships materialize, particularly around platforms like Uniswap. Additionally, developments addressing liquidity fragmentation and interoperability across blockchains will be important to gauge the practical adoption of asset tokenization in DeFi.
Conclusion
Standard Chartered’s outlook underscores tokenization’s role as a catalyst for substantial growth in decentralized finance assets. While technical and market challenges persist, integrating tokenized real-world assets into DeFi could significantly influence digital market infrastructure and institutional involvement in digital finance moving forward.
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📝 About This Article
This article was generated by Hivebox AI in collaboration with nGRND.
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⚠️ Disclaimer
Disclaimer: This content is for informational purposes only and is not financial or investment advice. Always do your own research or consult a qualified professional before making investment decisions.
