Standard Chartered projects that tokenized real-world assets (RWAs) will reach a market capitalization of $2 trillion by 2028, a figure that would match the current supply of stablecoins. This forecast was detailed in a report released on Thursday, which emphasized the increasing challenge decentralized finance (DeFi) poses to traditional financial systems.
Geoff Kendrick, the bank's global head of digital assets research, anticipates that money-market funds will secure $750 billion of this tokenized value. An additional $750 billion is expected to be allocated to tokenized U.S. stocks, with $250 billion directed towards U.S. funds and another $250 billion to less liquid segments such as commodities and real estate.
This projection signifies a substantial 57-fold increase from the current estimated $35 billion cumulative value of tracked RWAs. Kendrick highlighted that stablecoin liquidity and DeFi banking are essential prerequisites for this projected rapid growth in tokenization.
DeFi's Growing Influence and Stablecoin Expansion
The total stablecoin supply reached $300 billion on October 3, marking a year-to-date growth of 46.8%. This expansion contributes to the broader DeFi ecosystem through a self-sustaining cycle, as described by Kendrick, where liquidity fosters the development of new products, which in turn attract more liquidity.
The trustless nature of DeFi positions it as a competitive force against centralized traditional finance systems. Standard Chartered anticipates exponential growth in tokenized assets as global capital and payment flows increasingly migrate to blockchain infrastructure.
Regulatory Challenges and Institutional Adoption
Regulatory uncertainty remains the most significant threat to the expansion of the RWA sector. The report cautioned that progress could be impeded if comprehensive cryptocurrency legislation is not enacted before the 2026 midterm elections, particularly under a potential Trump administration.
Tokenization of private equity is expected to account for $250 billion, spanning both corporate debt and real estate segments. The bank's analysis indicates that blockchain technology offers efficiency advantages that will drive institutional adoption across a variety of asset classes.