Key Insights
- •Standard Chartered predicts a $2 trillion tokenization market by 2028.
- •Ethereum's robust network stability is a key driver.
- •Stablecoin growth is fueling the surge in DeFi and tokenization.
Standard Chartered forecasts the real-world asset tokenization market will reach $2 trillion by 2028, positioning Ethereum as the key platform amidst growing DeFi and stablecoin adoption.
This prediction signals a potential shift in institutional investment towards tokenized assets, potentially reshaping financial markets and fostering broader adoption of crypto infrastructures.
Ethereum's Crucial Role in Market Growth
Standard Chartered has announced a prediction of a $2 trillion real-world asset (RWA) tokenization market by 2028. The growth is expected largely due to advances in Decentralized Finance (DeFi) and stablecoins.
Standard Chartered predicts a $2 trillion tokenization market by 2028, driven by Ethereum’s network stability and the growth of stablecoins.
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Geoffrey Kendrick, Head of Digital Asset Research, has emphasized Ethereum’s role, attributing the choice to its stability and network effects, making it ideal for RWA projects.
Institutional Capital Influx Expected from Tokenization
The prediction suggests that institutional capital inflow will expand as traditional assets become more tokenized, affecting financial market dynamics significantly in the next few years.
The growing demand for regulatory-compliant stablecoins like USDC indicates a broader institutional engagement in DeFi, potentially reshaping financial interactions and asset custody.
Tokenization's Growth Trajectory Compared to DeFi's Past
Past events like the DeFi “summer” of 2020 showed a substantial rise in Total Value Locked (TVL) and tokenized volumes. This prediction marks a more structured and institutionalized growth phase.
Current RWA initiatives are on a trajectory similar to early DeFi models, but with anticipated larger financial backing and regulatory frameworks enhancing stability and scalability.
Geoffrey Kendrick, Head of Digital Asset Research, Standard Chartered, stated: "The popularity of stablecoins is laying the foundation for the on-chain transformation of traditional assets such as money market funds and stocks.”