Standard Chartered Predicts Real-World Asset Tokenization Market to Surge to $2 Trillion by 2028
Tokenized real-world assets (RWAs) grow fast. Decentralized finance and stablecoins push this surge. A recent report from Standard Chartered, as shared by ForkLog, says tokenized RWAs could hit $2 trillion by 2028. This forecast does not count stablecoins.
Foundation Built on Stablecoins and Ethereum
Jeffrey Kendrick, head of digital asset research at Standard Chartered, explains that stablecoins help the RWA segment grow. Stablecoins are digital tokens tied to regular money. They bring more liquidity to blockchains, boost investor interest, and support borrowing and lending in fiat-based tokens. This mix spurs more use of decentralized finance.
Ethereum stays the main blockchain for these tokens. Kendrick says Ethereum is trusted because its mainnet ran smoothly for over ten years. Although some blockchains offer faster or cheaper trades, Ethereum wins users with its strong security and steady performance.
Breakdown of the $2 Trillion Tokenized Asset Market
Standard Chartered splits the $2 trillion total into major groups:
- Money Market Funds: Around $750 billion. Companies use stablecoins to manage funds.
- Tradable Company Stocks: Also near $750 billion. Future US rules on decentralized assets help this part.
- Less Liquid Assets: These include private equity, commodities, corporate debt, and real estate. They are expected to form about $250 billion.
Today, RWA on-chain value is about $35.7 billion. This jump to $2 trillion is a growth of more than 50 times in a few years. It shows how fast old asset classes are joining the token world.
DeFi’s Growing Challenge to Traditional Finance
Decentralized finance started with crypto traders, borrowers, and lenders. More stablecoins in the mix now bring new tokens and users to decentralized finance. Kendrick believes these platforms can soon match regular banks in key areas like lending and trading real-world assets.
Some decentralized exchanges now let people trade tokenized stocks. These exchanges work without the old stock market rules. This change could shift how capital moves. Other gains of decentralized finance come from asset staking. Staking makes funds work harder and may bring better returns for users.
Kendrick also notes that extra liquidity can create more tokens. This extra money then makes even more liquidity available. The result is a cycle that pushes growth on its own.
Regulatory Advances Paving the Way
US lawmakers have given new rules that support decentralized finance. The Genius Act set up rules for stablecoins. This law helped both big companies and individuals use decentralized finance products more. In time, the Clarity Act could give legal support to other token and lending services. This move may lift limits that held back growth.
Industry Views on the Role of Stablecoins
Experts, including those at a16z Crypto, agree with Standard Chartered. They see stablecoins as a key force behind both decentralized finance and the wider acceptance of crypto by regular investors.
Implications for Real Estate and Beyond
The report talks about many asset types. Real estate now joins less liquid assets in the tokenized market. Tokenizing real estate may let small investors join in. It may also bring faster sales and buying in a market that has long been slow and difficult.
The Road Ahead
Tokenization and decentralized finance now share a close link. Over the next five years, the financial world may change a lot. Standard Chartered’s $2 trillion prediction for RWAs by 2028 shows big shifts. As regular banks and big players join this new world, tokenized assets can become part of lending and trading. This change brings tangible assets to blockchains in a clear way.
This new system mixes old finance with new tech. It builds fresh paths for investment and liquidity across money markets, stocks, real estate, and private equity. Every step in this change will show new ways for money to work in a fast-changing world.
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📝 About This Article
This article was generated by Hivebox AI in collaboration with AuCan Gold.
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