Key Takeaways:
- Standard Chartered forecasts a $2 trillion RWA tokenization market by 2028.
- Ethereum reliability positions it as the dominant blockchain for tokenization.
- Stablecoins have catalyzed DeFi growth, paving the way for tokenized traditional assets.
- Regulatory clarity will be crucial for maintaining long-term momentum.
Standard Chartered Bank has projected that the value of tokenized real-world assets (RWAs) could skyrocket to nearly $2 trillion by 2028, marking one of the most significant shifts in global finance since the rise of stablecoins. The forecast, led by Geoffrey Kendrick, Head of Digital Assets Research at Standard Chartered, highlights a transformative outlook for decentralized finance (DeFi) and Ethereum’s central role in this evolution.
Stablecoins Pave the Way for Tokenized Assets
According to Kendrick, stablecoins have been the foundation for this expansion, increasing liquidity and awareness across blockchain ecosystems. Their widespread adoption has normalized on-chain transactions, allowing traditional financial products—like money market funds (MMFs) and equities—to move on-chain at scale.
Also Read: Ethereum (ETH) Price Prediction: How a 15x Stablecoin Surge Could Drive Major Gains
Kendrick noted that stablecoins have turned DeFi from a niche experiment into a mainstream financial ecosystem, enabling non-bank institutions to handle payments and savings once dominated by traditional banks. This shift, he explained, is accelerating innovation in areas such as lending and RWA tokenization.
Ethereum Positioned as the Core Infrastructure
While several blockchains are vying for dominance, Kendrick believes Ethereum will remain the primary platform driving tokenization. He emphasized Ethereum’s unmatched reliability—operating for over a decade without a single mainnet outage—and dismissed concerns about competing networks offering faster or cheaper alternatives.
Standard Chartered’s estimates suggest that tokenized money-market funds and listed equities could each represent roughly $750 billion of the total $2 trillion market. The remainder would be distributed among tokenized funds, private equity, commodities, corporate debt, and real estate.
DeFi’s Next Frontier and Regulatory Caution
Also Read: DeFi Security Under Fire as Balancer Hit by $110 Million Exploit
The report underscores DeFi’s expanding role in reshaping global finance but also warns of potential regulatory challenges. Standard Chartered cautions that uncertainty in U.S. regulation, particularly before the 2026 midterm elections, could hinder progress—though it remains optimistic that clear guidelines will emerge.
