Tokenization Could Propel DeFi Assets to $2.7 Trillion by 2030, Says Standard Chartered

Standard Chartered forecasts a significant expansion of decentralized finance (DeFi), projecting assets locked in DeFi protocols to rise 37-fold to $2.7 trillion by 2030. This growth is expected to be driven by both tokenized real world assets (RWAs) and crypto-native assets moving onchain.

Growth Drivers: Tokenized RWAs and Crypto Assets

According to Geoff Kendrick, head of digital assets research at Standard Chartered, the expansion of DeFi will rely heavily on the increasing tokenization of real world assets alongside native crypto tokens. Currently, only a small fraction of tokenized assets participates in DeFi—around 3% of stablecoins and 10% of tokenized RWAs are used in DeFi protocols. Kendrick projects this share could rise to 30% by 2030, marking a nearly ninefold increase.

This anticipated adoption underscores the potential role of asset tokenization in channeling more traditional capital into DeFi, enhancing market liquidity and accessibility through digital finance innovation.

Market Potential and Existing Challenges

Earlier forecasts from Standard Chartered estimated non-stablecoin tokenized RWAs could grow to $2 trillion by 2028, with tokenized money-market funds and U.S. equities forming significant sectors. Yet, experts caution that tokenization does not inherently guarantee deeper or more unified markets. For example, issuing identical tokenized assets across multiple blockchains may lead to fragmented liquidity and pricing inefficiencies.

Additionally, tokenizing illiquid assets does not automatically produce liquidity, a challenge highlighted by industry voices during recent blockchain events. These factors illustrate that while tokenization expands access, market infrastructure and standards remain critical to unlocking full potential.

Uniswap’s Role as a Potential DeFi Hub for Tokenized Assets

Kendrick noted Uniswap’s established reputation, scale, and resilience through multiple crypto cycles as positioning it well to facilitate trading of tokenized RWAs onchain. Such attributes are important to traditional financial institutions prioritizing security and reliability when entering DeFi markets.

He further suggested that successful commercialization and integration with traditional finance partnerships could enhance Uniswap’s market valuation relative to transaction fees, narrowing the gap with centralized exchanges like Coinbase.

Why It Matters

The projected growth of DeFi assets to $2.7 trillion driven by tokenization signals expanding institutional interest and deeper integration between traditional finance and decentralized protocols. Increased adoption of asset tokenization in DeFi can improve market infrastructure by creating more transparent, programmable, and accessible financial instruments. However, achieving these milestones depends on overcoming liquidity fragmentation and regulatory clarity to support sustainable market development. This evolution could play a key role in how digital finance and Real World Assets interconnect moving forward.

Key Details

• Standard Chartered forecasts a 37x increase in assets locked in DeFi to reach $2.7 trillion by 2030.
• Tokenized RWAs and crypto-native assets will jointly drive this growth.
• Current DeFi utilization: ~3% of stablecoins and 10% of tokenized RWAs.
• Expected DeFi utilization of tokenized assets to rise to 30% by 2030.
• Uniswap identified as a potential critical trading platform for tokenized assets.
• Challenges include liquidity fragmentation and illiquidity of certain tokenized assets.

What to Watch Next

Observers should monitor how DeFi protocols adapt to increasing real world asset integration and the evolution of market infrastructure addressing liquidity and interoperability. Regulatory developments affecting asset tokenization and institutional participation will also be important to follow. The role of DEXs like Uniswap in bridging traditional finance with DeFi through tokenized RWAs warrants attention.

Conclusion

Standard Chartered’s projections illuminate tokenization’s pivotal role in scaling decentralized finance, linking emerging digital finance innovations with traditional institutional capital. While opportunities are significant, the pace of DeFi asset growth depends on solving fragmentation challenges and fostering robust onchain ecosystems for real world asset tokenization. This dynamic will shape the future landscape of DeFi and broader digital asset markets.

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📝 About This Article  

This article was generated by Hivebox AI in collaboration with nGRND.
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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.