Standard Chartered Predicts $2 Trillion Tokenized Asset Market by 2028
**Standard Chartered Forecasts Tokenized Real-World Assets to Reach $2 Trillion by 2028**
Standard Chartered Bank has released a compelling forecast predicting that tokenized real-world assets will balloon from the current $35 billion market to an astonishing $2 trillion by the end of 2028. This projection represents a remarkable 56-fold increase over the next three years.
The forecast, detailed in a report authored by Geoffrey Kendrick, Head of Digital Assets Research at Standard Chartered, highlights the transformative potential of tokenization in global finance. Notably, the $35 billion figure excludes stablecoins, which form a foundation for this growth.
### Ethereum to Dominate Tokenization
Kendrick expects Ethereum to host the vast majority of tokenized assets. Over its more than 10 years of operation, Ethereum’s mainnet has demonstrated unparalleled reliability with zero network outages. According to Kendrick, this reliability outweighs other chains’ advantages in speed and cost, making Ethereum the preferred blockchain for institutional adoption.
### What is Tokenization?
Tokenization refers to the process of converting traditional assets into digital tokens on a blockchain. This innovation drastically accelerates trading and settlement across global markets, introducing more liquidity and transparency.
### Market Breakdown: Tokenized Assets by Category
– **Money Market Funds:** Projected to account for $750 billion of the $2 trillion total.
– **Listed Equities:** Expected to also reach $750 billion.
– **Tokenized Funds:** Set to comprise $250 billion.
– **Private Equity, Commodities, Corporate Debt, and Real Estate:** These categories will collectively make up the remaining $250 billion.
### The Role of Stablecoins and Regulatory Support
The growth forecast is closely tied to the infrastructure built by stablecoins. Kendrick notes that stablecoins have paved the way by creating liquidity and lending capacity on blockchain networks — critical building blocks for scaling other asset classes onchain.
The passing of the U.S. GENIUS Act in July 2025 established a clear regulatory framework for stablecoins, significantly accelerating their adoption among retail and institutional investors. This regulatory clarity is also vital for legitimizing asset tokenization and decentralized trading platforms.
Furthermore, additional legislation such as the Digital Asset Market Clarity Act could pass by late 2025 or early 2026, further supporting tokenized asset growth. Even in the absence of new laws, ongoing consultations by regulators like the SEC and CFTC—expected to conclude by mid-2026—may provide necessary guidance.
### Risks to Growth
One key risk identified by Kendrick is a potential lack of regulatory clarity ahead of the November 2026 midterm elections, which could slow momentum in the sector.
### Industry Perspectives
Eddie Hui-Bon-Hoa, CEO of AlphaLadder Finance, told TheStreet that the growth trajectory of tokenized assets will closely mirror that of stablecoins. He noted that tokenized assets enable instant deployment and collateralization, greatly enhancing liquidity and financial flexibility.
According to Hui-Bon-Hoa, stablecoins represent the simplest form of tokenization. The next wave will involve tokenized bonds, funds, and equities. Major platforms like Kraken and Robinhood have already explored tokenized stock offerings, though questions remain about shareholder rights and ownership structures.
### Looking Ahead: Decentralized Finance Disrupting Traditional Markets
Kendrick emphasized that decentralized finance (DeFi) has the potential to disrupt traditional finance by enabling real-world assets and lending markets on blockchain networks. Trading tokenized assets on decentralized exchanges presents a significant challenge to traditional stock exchanges.
—
As regulatory clarity improves and infrastructure matures, tokenization stands poised to revolutionize the way assets are traded and managed globally, unlocking unprecedented liquidity and efficiency in financial markets.
https://coincentral.com/standard-chartered-predicts-2-trillion-tokenized-asset-market-by-2028/
You may also like
Leave a Reply