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

Standard Chartered has projected significant growth in decentralized finance (DeFi) assets, forecasting that the total locked value could rise to $2.7 trillion by 2030. This expansion is expected to be driven by the increased adoption of tokenized real-world assets (RWAs) as well as crypto-native assets on blockchain protocols.

Growth Drivers in DeFi Through Tokenization

According to Geoff Kendrick, head of digital assets research at Standard Chartered, both tokenized RWAs and native crypto assets will propel this growth. Currently, just a small percentage of tokenized assets—3% of stablecoins and 10% of RWAs—are utilized within DeFi platforms. Kendrick anticipates this share will increase to approximately 30% by the end of the decade. This shift emphasizes the rising role of asset tokenization in channeling more capital onto onchain DeFi protocols.

Challenges in Tokenized Asset Markets

Despite optimism about the potential expansion, some industry experts caution that tokenization does not inherently guarantee deep liquidity or unified trading markets. Chris Kim, CEO of Axis, points out that issuing identical assets across multiple blockchain networks may lead to fragmented liquidity pools and inconsistent pricing, which could hamper efficient trading. Oya Celiktemur from Ondo Finance highlights that tokenizing traditionally illiquid assets does not automatically enhance their liquidity.

Uniswap’s Potential Role as a Tokenized Asset Hub

Kendrick identifies Uniswap as a promising decentralized exchange to become a central hub for trading tokenized assets. He cites Uniswap’s scale, established brand, and proven resilience through various crypto cycles as attractive features, especially to traditional financial institutions prioritizing security and reliability. Successful commercial partnerships with traditional finance players could also enhance Uniswap’s market position relative to centralized exchanges.

Why It Matters

The forecast by Standard Chartered underscores the growing institutional interest in integrating real-world assets with DeFi ecosystems through tokenization. Advancements in asset tokenization could significantly transform market infrastructure by increasing capital flows onto decentralized platforms. However, challenges such as fragmented liquidity and regulatory considerations around RWAs remain critical issues to address for sustainable growth.

Key Details

• Standard Chartered projects DeFi assets could grow 37-fold to $2.7 trillion by 2030.
• Current use of stablecoins and tokenized RWAs in DeFi is under 10%; expected to rise to 30%.
• Tokenized money-market funds and US equities are major components of future growth.
• Concerns exist regarding fragmented liquidity and the true liquidity impact of tokenization.
• Uniswap is highlighted as a potential primary exchange for tokenized asset trading.

What to Watch Next

Observers should monitor how institutional adoption of tokenized RWAs evolves within DeFi, particularly through major decentralized exchanges like Uniswap. The development of more interoperable token standards and regulatory frameworks will also play significant roles in shaping the tokenization landscape and its impact on DeFi markets.

Conclusion

Standard Chartered’s forecast positions tokenization as a key growth vector for DeFi, potentially unlocking substantial value tied to real-world assets on blockchain networks. While promising, the path forward includes addressing liquidity fragmentation and ensuring seamless integration of tokenized assets into decentralized finance protocols. This highlights the ongoing interplay between innovation, market infrastructure, and institutional frameworks in the digital asset space.

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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.