At a Glance
- Tokenized real-world assets (RWAs) could reach a collective valuation of $2 trillion within the next three years, according to Standard Chartered.
- This projection is driven by the migration of global capital and payments to more efficient blockchain infrastructure.
- Decentralized finance (DeFi) is expected to challenge traditional finance (TradFi) due to its trustless structure and growing use in payments and investments.
- Standard Chartered predicts that by 2028, non-stablecoin tokenized RWAs will reach $2 trillion, with significant portions allocated to money-market funds, tokenized US stocks, and private equity segments.
- Regulatory uncertainty is identified as the primary risk to the RWA sector’s growth.
The Rise of Tokenized Real-World Assets
Tokenized real-world assets (RWAs) are on a trajectory to achieve a combined value of $2 trillion within the next three years. This significant growth is anticipated as more global capital and payment systems transition to more efficient blockchain networks, as reported by investment bank Standard Chartered.
In a recent report, Standard Chartered highlighted that the inherently trustless nature of decentralized finance (DeFi) is positioned to disrupt the established financial markets dominated by traditional, centralized institutions.
The increasing adoption of DeFi for both investment and payment purposes is expected to propel the market capitalization of non-stablecoin tokenized RWAs to $2 trillion by 2028, according to the investment bank’s forecasts.
This projected $2 trillion market is anticipated to be distributed across various asset classes. Standard Chartered estimates that $750 billion could flow into tokenized money-market funds, another $750 billion into tokenized U.S. stocks, $250 billion into tokenized U.S. funds, and an additional $250 billion into less liquid private equity segments, including commodities, corporate debt, and tokenized real estate.
Geoff Kendrick, Standard Chartered’s global head of digital assets research, stated that Stablecoin liquidity and DeFi banking are important pre-requisites for a rapid expansion of tokenised RWAs. He further emphasized, We expect exponential growth in RWAs in the coming years.
This projected market capitalization represents an impressive growth of over 57 times from the current estimated cumulative value of $35 billion for RWAs, based on data from RWA.xyz.
DeFi’s Growth Cycle Fueled by Stablecoins
The total supply of stablecoins recently surpassed a record high of over $300 billion, marking a 46.8% increase year-to-date. This expansion of stablecoin liquidity is playing a crucial role in fortifying the broader DeFi ecosystem.
Kendrick explained this dynamic, stating, In DeFi, liquidity begets new products, and new products beget new liquidity. We believe a self-sustaining cycle of DeFi growth has started.
📍 Despite this optimistic outlook, Standard Chartered identified regulatory uncertainty as the most significant challenge facing the RWA sector. The report cautioned that progress could be significantly hampered if comprehensive cryptocurrency legislation is not enacted before the 2026 midterm elections.
Expert Summary
Standard Chartered projects a substantial growth in tokenized real-world assets, potentially reaching $2 trillion in three years, driven by blockchain adoption and DeFi’s increasing influence. The report highlights the symbiotic relationship between stablecoin liquidity and DeFi growth, while also pointing out regulatory uncertainty as a key risk factor.