Standard Chartered Predicts Steady Growth in Tokenized Assets, Positioning DeFi for Sizeable Gains 

Standard Chartered Bank (LON: STAN) has projected that the total value of tokenized assets on blockchain networks could reach an impressive $4 trillion by the close of 2028. This forecast, shared by Geoffrey Kendrick, the bank’s Global Head of Digital Assets Research, underscores the accelerating convergence of traditional finance with decentralized technologies. The projection splits the market evenly, anticipating roughly $2 trillion in stablecoins and another $2 trillion in non-stablecoin real-world assets (RWAs) such as tokenized treasuries, equities, funds, and other financial instruments.

This estimate builds on the momentum observed in on-chain finance.

Currently, tokenized RWAs stand at a relatively modest level—around $35 billion—highlighting the potential for extraordinary expansion over the next few years.

Kendrick emphasizes that stablecoin growth has laid critical groundwork by boosting liquidity, awareness, and on-chain activity, creating fertile conditions for broader asset tokenization to flourish.

A key highlight of the report is the central role DeFi protocols are expected to play as primary beneficiaries.

Mature platforms equipped with advanced risk management, scalability, and track records are poised to capture substantial value from this influx.

DeFi‘s “composability” stands out as a game-changing feature: it allows a single asset to simultaneously generate yields, function as collateral in lending markets, and provide liquidity—all within an efficient, intermediary-light environment.

This multi-purpose utility creates synergistic effects that traditional systems struggle to replicate.

For instance, products like BlackRock‘s tokenized U.S. Treasury fund (BUIDL) exemplify this potential.

Beyond delivering Treasury yields, tokenized versions can integrate seamlessly into DeFi ecosystems for collateral and reserve purposes, enhancing overall efficiency and returns.

Examples of current scale include lending protocols handling billions in daily volumes and institutional partnerships demonstrating growing comfort with decentralized infrastructure.

Regulatory developments could further catalyze this shift. The anticipated progress of the CLARITY Act is viewed as a pivotal near-term driver, potentially smoothing the path for traditional financial institutions to move assets onto blockchain rails with greater confidence.

With off-chain assets vastly outweighing on-chain ones by a factor of about 1,000, tokenization of institutional-grade holdings represents a massive untapped opportunity.

Challenges remain, including security vulnerabilities that have affected some DeFi platforms.

However, the report suggests that established players with strong risk controls—such as those dominating lending and borrowing segments—will be favored by institutions seeking reliability.

Ethereum is expected to maintain its position as the leading settlement layer due to its network effects and maturity.

Standard Chartered’s analysis paints an optimistic picture of DeFi evolving from a niche innovation into core financial infrastructure.

As tokenization bridges TradFi and decentralized systems, it could unlock new efficiencies, accessibility, and economic value across global markets. This trajectory not only signals transformative growth for the crypto ecosystem but also indicates disruption in conventional banking and asset management.