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 to $2.7 trillion by 2030, fueled by increased adoption of tokenized real-world assets (RWAs) and crypto-native assets on blockchain protocols.
Growth Projection for DeFi Through Tokenization
Geoff Kendrick, head of digital assets research at Standard Chartered, outlined in a recent research note that the value of tokenized assets active in DeFi may increase 37-fold by the end of 2030. Currently, just 3% of stablecoins and 10% of tokenized RWAs are utilized within DeFi. Kendrick expects this figure to rise to 30% within the coming decade, significantly expanding capital flow into decentralized finance.
The Role of Real World Assets in DeFi Expansion
Tokenization of RWAs such as money-market funds and US equities is central to this anticipated growth. Standard Chartered had previously forecast that non-stablecoin tokenized RWAs alone could reach $2 trillion by 2028. The integration of these tokens into DeFi protocols could transform traditional financial exposure by enabling more seamless onchain transactions.
Market and Liquidity Challenges
While tokenization opens new avenues for DeFi, experts including industry executives have cautioned that it does not guarantee market depth or liquidity. Issuing identical assets across various blockchains may fragment liquidity and lead to pricing inefficiencies. Moreover, tokenizing inherently illiquid assets does not automatically enhance their liquidity, highlighting ongoing challenges for the tokenization infrastructure.
Uniswap’s Potential Role in Tokenized Asset Trading
Kendrick identified Uniswap as a probable hub for trading tokenized assets due to its scale, reputation, and robustness through crypto market cycles. Security and reliability provided by established decentralized exchanges like Uniswap could be vital to attracting institutional investors into DeFi markets for tokenized RWAs.
Why It Matters
This forecast underscores the growing expectation that tokenization will be a key factor in channeling institutional capital into DeFi protocols. Expanding the use of tokenized RWAs could enhance liquidity and diversity within decentralized markets, potentially transforming market infrastructure. However, realizing this growth depends on overcoming fragmentation and creating unified, liquid tokenized asset markets.
Key Details
- Standard Chartered projects DeFi assets to grow to $2.7 trillion by 2030.
- Current use of tokenized assets in DeFi: ~3% of stablecoins, 10% of tokenized RWAs.
- Expected tokenized asset usage in DeFi: 30% by 2030.
- Non-stablecoin tokenized RWAs forecasted to reach $2 trillion by 2028.
- Uniswap highlighted as potential dominant trading venue for tokenized assets.
- Market fragmentation and liquidity remain challenges to broad adoption.
What to Watch Next
Watch for developments in how tokenized RWAs integrate with DeFi protocols and the emergence of unified trading venues. Industry responses to liquidity challenges and regulatory frameworks around asset tokenization may influence adoption pace. Monitoring partnerships between traditional finance and DeFi platforms like Uniswap will also provide insight into institutional engagement.
Conclusion
Standard Chartered’s forecast highlights tokenization as a major driver for the future expansion of DeFi assets, particularly through real-world assets. Achieving the projected growth will require addressing market fragmentation and enhancing liquidity, factors critical to advancing asset tokenization as a foundational element in digital finance innovation.
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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.
