Tokenized real-world assets (RWAs) are projected to reach a cumulative value of $2 trillion within the next three years, driven by the migration of global capital and payments onto more efficient blockchain infrastructure, according to a report by investment bank Standard Chartered.
The bank's analysis, shared with Cointelegraph, highlights that the "trustless" nature of decentralized finance (DeFi) is poised to challenge the established dominance of traditional financial (TradFi) systems, which are currently controlled by centralized entities.
Standard Chartered forecasts that the increasing adoption of DeFi in payments and investments could propel non-stablecoin tokenized RWAs to a market capitalization of $2 trillion by 2028.
This projected $2 trillion market value is expected to be distributed across various segments: $750 billion allocated to money-market funds, an additional $750 billion to tokenized U.S. stocks, $250 billion to tokenized U.S. funds, and a further $250 billion to less liquid private equity areas, including commodities, corporate debt, and tokenized real estate.
Geoff Kendrick, Standard Chartered's global head of digital assets research, emphasized the importance of stablecoin liquidity and DeFi banking as essential prerequisites for the rapid expansion of tokenized RWAs. He stated, "We expect exponential growth in RWAs in the coming years."
Achieving a $2 trillion market capitalization would represent a more than 57-fold increase from the current estimated cumulative value of $35 billion for RWAs over the next three years, according to data from RWA.xyz.
Stablecoins Fueling DeFi's Self-Sustaining Growth Cycle
The total supply of stablecoins recently reached a new record, exceeding $300 billion on October 3rd, signifying a year-to-date growth rate of 46.8%.
Kendrick noted that this expansion of stablecoins is actively reinforcing the broader DeFi ecosystem. He explained, "In DeFi, liquidity begets new products, and new products beget new liquidity. We believe a self-sustaining cycle of DeFi growth has started."
Despite the prevailing optimism surrounding the RWA sector, Standard Chartered identified regulatory uncertainty as the most significant threat. The report cautioned that progress could be impeded if comprehensive cryptocurrency legislation is not enacted by the Trump administration before the 2026 midterm elections.